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 4.250 hours and used $237,500 worth of materials, equipment usage, and supplies. Labor is $25 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 Cumulative Improvement Factor Unit 60% 65% 70% 75% 80% 85% 90% 95% 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 1.600 1.650 1.700 1.750 1.800 1.850 1.900 1.950 3 2.045 2.155 2.268 2.384 2.502 2.623 2.746 2.872 4 2.405 2.578 2.758 2.946 3.142 3.345 3.556 3.774 5 2.710 2.946 3.195 3.459 3.738 4.031 4.339 4.662 6 2.977 3.274 3.593 3.934 4.299 4.688 5.101 5.538 7 3.216 3.572 3.960 4.380 4.834 5.322 5.845 6.404 8. 3.432 3.847 4.303 4.802 5.346 5.936 6.574 7.261 9 3.630 4.102 4.626 5.204 5.839 6.533 7.290 8.111 10 3.813 4.341 4.931 5.589 6.315 7.116 7.994 8.955 12 4.144 4.780 5.501 6.315 7.227 8.244 9.374 10.62 14 4.438 5.177 6.026 6.994 8.092 9.331 10.72 12.27 16 4.704 5.541 6.514 7.635 8.920 10.38 12.04 13.91 18 4.946 5.879 6.972 8.245 9.716 11.41 13.33 15.52 20 5.171 6.195 7.407 8.828 10.48 12.40 14.61 17.13 22 5.379 6.492 7.819 9.388 11.23 13.38 15.86 18.72 24 5.574 6.773 8.213 9.928 11.95 14.33 17.10 20.31 25 5.668 6.909 8.404 10.19 12.31 14.80 17.71 21.10 (Continued Exhibit 6.5 (Continued) Cumulative Improvement Factor 70% 75% 80% 95% 90% 85% Unit 60% 65% 17.09 25.00 20.73 30 6097 7.540 11.45 1402 9305 19.29 23.67 35 28.86 6.478 8.109 15 64 10.13 12.72 40 6.821 26 54 3268 8.631 10.90 13.72 17.19 21.43 45 7.134 29.37 9.114 14.77 36.47 11.62 18 68 23.50 50 7.422 9.565 12.31 15.78 20.12 25.51 32.14 40.22 60 7.941 10.39 13.57 17.67 2287 29.41 37.57 47.65 70 8.401 11.13 14.74 19.43 25.47 33.17 4287 54 99 80 8.814 11.82 15.B2 21.09 27.96 36.80 48.05 62.25 90 9.191 12.45 16.83 22.67 30.35 40.32 53.14 69.45 100 9.539 13.03 17.79 24.18 3265 43.75 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 29.67 41.22 56.78 77.46 104.7 160 11.21 15.97 22.72 32.17 45.20 62.95 85.80 118.5 180 11.67 16.79 24.14 34.54 49.03 68.95 95 96 132.1 200 12.09 17.55 25.48 36.80 52.72 74.79 1050 145.7 250 13.01 19.28 28.56 42 05 61.47 88.83 1269 1792 300 13.81 20.81 31.34 46.94 69.66 1022 1482 2122 350 14.51 22.18 33.89 51.48 7743 115.1 1690 400 15.14 23.44 36.26 84 85 1276 1893 55.75 59.80 2770 15.72 24 60 38.48 91.97 139.7 2092 500 16.26 25.68 40.58 63.68 9885 1515 2288 600 1721 27.67 70.97 1120 1742 267.1 4033 700 18.06 29.45 4804 77.77 124.4 196.1 3045 4653 800 18.82 31.09 51.36 84.18 136.3 2173 3410 5265 900 19.51 32.60 54.46 90.26 147.7 2379 3759 1.000 5872 20.15 3101 57.40 96.07 158.7 2579 4122 1.200 21.30 36 59 62.85 1070 179.7 2966 4812 1.400 766.5 22.32 38.92 67.85 117.2 1996 3339 8842 1,600 23.23 41.04 72.49 1268 218.6 3699 6142 1.800 1001 24.06 43.00 76 85 135.9 2368 4049 6788 2.000 2483 80.96 144.7 254.4 7423 2.500 26.53 1230 48.97 90 39 165.0 296.1 5208 8970 27.99 1513 3,000 5262 98.90 183.7 3352 5989 1047