Question: Lazer Technologies Incorporated ( LTI ) has produced a total of 2 0 high - power laser systems that could be used to destroy any
Lazer Technologies Incorporated LTI has produced a total of highpower laser systems that could be used to destroy any approaching enemy missiles or aircraft. The units have been produced, funded in part as private research within the research and development arm of LTI, but the bulk of the funding came from a contract with the US Department of Defense DoD
Testing of the laser units has shown that they are effective defense weapons, and if redesigned to add portability and easier field maintenance, the units could be truckmounted.
The DoD has asked LTI to submit a bid for units.
The units that LTI has built so far cost the following amounts and are listed in the order in which they were produced: Use Exhibit and Exhibit
UNIT NUMBER COST $ MILLIONS UNIT NUMBER COST $ MILLIONS
$ $
Based on past experience, what is the learning rate?
Note: Do not round intermediate calculations. Round your answer to the nearest whole percent.
What bid should LTI submit for the total order of units, assuming that learning continues?
Note: Use your rounded learning rate from Part a Enter your answer in millions of dollars rounded to one decimal place.
What is the cost expected to be for the last unit under the learning rate you estimated?
Note: Use your rounded learning rate from Part a Enter your answer in millions of dollars rounded to one decimal place.
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