Use the information below to prepare a response, using the Learning Curve concept:

The Arkansas Robot Development Company $($ARDC$)$ has a contract to produce ten $(10)$ robots for

LargeMart, the world$$s largest retail company. ARDC will produce the $10$ robots in$-$house. ARDC has

estimated the R&D costs will be $$15,000,000,$ with the cost of materials to be $$25,000,000.$ It has been

estimated by ARDC that the design and production of the first robot will require $50,000$ labor hours and

an $80\mathrm{.}0\%$ learning curve is expected. Labor cost for development and production is $$400$ per hour. ARDC

requires a profit of $20\%$ for this project.

$1.$ How may labor hours should the $10$th robot require?

$2.$ What will be the estimated labor hours for the entire project?

$3.$ What is the contract price which ARDC should present to LargeMart?

$4.$ Midway through the project, the production engineers determine a $70\mathrm{.}0\%$ learning curve is more

accurate. What is the impact on the project of using this revised learning curve?

$5.$ As the project nears the end, LargeMart has requested a cost estimate to produce an additional six $(6)$

robots. What price should ARDC quote for those additional robots?