Question: QUESTION 7 Learning Curve (Question 2): Near the end, Perez Corps received a request for an extension project of three additional towers. The customer negotiated

 QUESTION 7 Learning Curve (Question 2): Near the end, Perez Corps

QUESTION 7 Learning Curve (Question 2): Near the end, Perez Corps received a request for an extension project of three additional towers. The customer negotiated with Perez for an 80% learning curve (instead of 85% before) (since Perez has already built 10 towers). The project leader wants to maintain a 35% profit margin. What price will Perez Corps quote for the new project including the 35% profit? Material cost for 3 towers, 0.5 million x 3 Labor cost for | |" tower with 80%. = [i.e., 80,000 hrs x (_) x $/hr] Labor cost for 12th tower with 80% Labor cost for 13th tower with 80% Find total cost Find profit (35%) Find total cost Including profit Get the total estimate for the extension project O $13,694,616 O $15,904,616 O $17,254,616 O $10,694,616

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