Question: XYZ develops a new treadmill. This treadmill has some added features to make it feel like running on a real track. ABC gave the first

XYZ develops a new treadmill. This treadmill has some added features to make it feel like running on a real track. ABC gave the first order to supply two units. XYZ produced and delivered these two units to ABC. Broadly three factors in producing this treadmill are technical labour hours, general labor hours, and material costs. The first unit produced by XYZ took 28 technical labour hours 17 general labour hours, and the material cost was $948 per unit. They determined a learning rate of 75% in technical labour hours and 90% in general labour hours. XYZ pays $35 per hour to their technical labourers and $21 per hour to their general labourers. ABC placed second and third orders of six and eight treadmills, respectively. Learning in both factors continues. XYZ produced and delivered both orders on time. ABC clients were happy and satisfied with the new treadmills. ABC decided to change further nineteen old treadmills. Therefore, they are interested in placing the fourth order of nineteenn treadmills. In this connection, they asked XYZ to submit their bid. Learning in both factors continues, and XYZ'S pay rate to its labour and material cost is not changed. (a) What will be the cost of the sixth unit of the intended fourth-order? (b) What would be the average cost of a treadmill of the intended fourth-order? (c) What will be the bidding amount if XYZ decides to keep a 15% profit margin over the cost of the intended fourth-order?

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