Question: Was BIU A E DE E 1 2 56 3. As a logistics manager, you are also responsible for selling your products and negotiate your

 Was BIU A E DE E 1 2 56 3. As

Was BIU A E DE E 1 2 56 3. As a logistics manager, you are also responsible for selling your products and negotiate your selling prices. A local army unit places an order for 200 units of AK99 that you have specially designed. Your cost structure is as follows: Material cost $40, Labor time=6 hours, your cost for labor hours is @$10/hour, Overhead cost is 40% of the labor and material costs, and Profit is added as 20% of the three costs. Based on the quality and usefulness of your product, the army unit orders an additional 1000 units of AK99. You negotiate that the production learning rate is 90%. a. What is your average cost of the first order? (15) 1 b. What will be your unit price for the second order? (30) c. How much will you charge for the new order of 1000 units of AK99? (5) d. Suppose your material supplier gives you a 10% discount on the second order because of your large order, what would be your unit cost of the second order? (20)

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