Question: Problem 2 The labor cost to produce a widget is $20 per hour. Material cost is $50 per unit. The overhead cost is charged as

Problem 2 The labor cost to produce a widget is $20

Problem 2 The labor cost to produce a widget is $20 per hour. Material cost is $50 per unit. The overhead cost is charged as 60% of the labor and materials cost. The learning rate is 85%. a. Determine the average cost for 40 units, given that the first unit took 7 hours to complete. b. Assume the item can be purchased from a vendor for $170 per unit, Should we just buy the needed 40 units or produce them. Explain. c. What are your answers for a and b if the needed quantity is 100 units? Show all your work

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