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 3,500 hours and used $200,000 worth of material, equipment usage, and supplies. Labor is $30 per hour.

(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?

(b) Suppose that Lambda was asked to present a bid for additional 10 units after 3 months delay since the second unit was completed. During this time, personnel and equipment were reassigned to other projects. What would be the total production costs for the additional 10 units? ( When you consider the forgetting effects for this problem, make sure that the PRODUCTION UNIT must be an integer, i.e., if you get any non-integer values from the equation, it needs to be rounded to the nearest integer value.)

Please explain part B using forgetting effect calculating the learning loss!