Problem $6-7($Algo$)$

Johnson Industries received a contract to develop and produce four high$-$intensity long$-$distance receiver$/$transmitters for cellular

telephones. The first took $2,000$ labor hours and $$39,000$ worth of purchased and manufactured parts; the second took $1,220$ labor

hours and $$27,690$ in parts; the third took $970$ labor hours and $$23,400$ in parts; and the fourth took $720$ labor hours and $$19,110$ in

parts.

Johnson was asked to bid on a follow$-$on contract for another dozen receiver$/$transmitter units. $($Hint: There are two learning curves$-$

one for labor and one for parts.$)$ Use Exhibit $6\mathrm{.}5.$

a$.$ How many labor hours should Johnson estimate are needed for the additional $12$ units? $($Round your answer to the nearest whole

number.$)$

Estimated labor

hours

b$.$ How much should Johnson estimate the parts cost will be for the additional $12$ units? $($Round your answer to the nearest dollar

amount.$)$