Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies. The second unit took 4,000 hours and used $225,000 worth of materials, equipment usage, and supplies. Labor is $35 per hour. Use Exhibit 6.5. a. Lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. Production would start immediately. What would this bid be? Cost for 10 more units Exhibit 6.5 Improvement Curves: Table of Cumulative Values Unit 60% 95% 1 2 2 1.000 1.600 85% 1.000 1.850 2.623 3.345 90% 1.000 1.900 2.746 1.000 1.950 2872 3 65% 1.000 1.650 2.155 2.578 2.946 3.274 3.572 2.045 4 2.405 3.556 3.774 5 2.710 4.031 4.339 2.977 .. 3.216 2.432 4.688 5.322 5.101 5.845 7 8 5.936 6.574 7.290 Cumulative Improvement Factor 70% 75% 80% 1.000 1.000 1.000 1.700 1.750 1.800 2.268 2384 2.502 2.758 2946 3.142 3.195 3.459 3.738 3.593 3.934 4.299 3.960 4.380 4.834 4.203 4.802 5.346 4.626 5.204 5.829 4.931 5589 6.315 5 501 6315 7.227 6.026 6994 8.092 6.514 7.635 8.920 6.972 8245 8 9.716 7.407 8.828 10.48 7.819 9 388 11.23 8.213 9928 11.95 8.404 10.19 12.31 4.662 5.538 6.404 7261 8.111 8.955 1062 9 2.847 4.102 4.341 4.780 2.630 6.533 3.813 10 12 4 144 7.116 8.244 9.331 7.994 9.374 10.72 14 4.438 5.177 12.27 13.91 16 4.704 5.541 10.38 1204 18 4.946 11.41 13.33 5.879 6.195 20 12.40 5.171 5.379 15.52 17.13 18.72 22 6.492 14.61 15.86 17.10 13.38 24 5.574 6.772 14.33 20.31 21.10 25 5.668 6.900 14.80 17.71 30 6.097 7.540 9.305 11.45 14.02 17.09 20.73 25.00 35 6.478 8.109 10.13 12.72 15 64 19.29 23.67 28.BG 40 6.821 8.631 10.90 13.72 17.19 21.43 26.54 32.68 45 7.134 9.114 11.62 14.77 18.68 2350 29.37 36.47 50 7.422 9.565 12.31 15 78 2012 25 51 32.14 4022 60 7.941 10.39 13.57 17.67 2287 37.57 47.65 70 8.401 11.13 14.74 1943 25.47 33.17 42.87 54.99 80 8.814 11.82 15 B2 21.09 27.96 36.80 4805 62.25 90 9.191 12.45 16.12 22.67 30.35 40.32 52.14 69.45 100 9.529 13.03 17.79 24.18 32 65 42.75 58.14 76.59 120 10.16 14.11 19.57 27.02 37.05 50 39 67.93 90.71 140 10.72 15.08 21.20 2967 41.22 56.78 77 46 1047 160 1121 15.97 22.72 32.17 45.20 6295 86.80 118.5 132.1 180 11.67 16.79 24.14 34.54 49.03 68.95 95.96 200 12.09 17.55 25.48 36.80 5272 74.79 1050 1457 250 13.01 19.28 28.56 42.05 61.47 88.83 126.9 1792 300 13.81 20.81 31.34 46.94 69.66 102.2 149.2 2122 350 14 51 22.18 33.89 51.49 77.43 1151 169.0 2448 400 15.14 23.44 36.26 55.75 84.85 127.6 189.3 277.0 450 15.72 24.60 39.48 59.80 91.97 139.7 209 3090 500 16.26 25.68 40 58 63.68 98.85 1515 340.6 600 17 21 27.57 44.47 7097 112.0 1742 228.8 267.1 304.5 4033 700 18.06 29.45 48.04 77.77 124.4 196.1 4653 800 1882 31.09 51.36 84.18 136.3 217.3 341.0 526.5 900 19.51 32.60 54.46 90.28 147.7 227.9 376.9 5872 1.000 20.15 31.01 57.40 96.07 158.7 257.9 412.2 647.4 1.200 21 30 36.59 62.85 107. 179.7 296.6 481.2 766.6 1,400 22 32 38.92 67.65 1122 1996 3339 548.4 8842 1,600 23 23 41.04 72.49 1269 2186 3699 6142 1001 1.800 24 06 4300 76.85 1359 2368 4049 6788 1116 2.000 24.83 44.84 80.96 144.7 254.4 438.9 742.3 1230 2.500 25.53 48.97 90.39 165.0 296.1 520.8 8970 1513 3.000 27.99 52.62 98.90 183.7 3352 598.9 1047 1791