Lazer Technologies Inc. (LTI) has produced a total of 20 high-power laser systems that could be...

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Lazer Technologies Inc. (LTI) has produced a total of 20high-power laser systems that could be used to destroy anyapproaching enemy missiles or aircraft. The 20 units have beenproduced, funded in part as private research within the researchand development arm of LTI, but the bulk of the funding came from acontract with the U.S. Department of Defense (DoD).
Testing of the laser units has shown that they are effectivedefense weapons, and through redesign to add portability and easierfield maintenance, the units could be truck-mounted.
DoD has asked LTI to submit a bid for 100 units.
The 20 units that LTI has built so far cost the followingamounts and are listed in the order in which they were produced:Use Exhibit 6.4 and Exhibit 6.5
UNIT
NUMBER COST
($ MILLIONS) UNIT
NUMBER COST
($ MILLIONS)
1 $ 13.0 11 $ 3.7
2 8.8 12 3.6
3 7.4 13 3.4
4 6.2 14 3.4
5 5.7 15 3.2
6 5.2 16 3.2
7 4.8 17 3.0
8 4.5 18 2.9
9 4.2 19 2.8
10 4.0 20 2.8
a. Based on past experience, what is thelearning rate? (Do not round intermediate calculations.Round your answer to the nearest whole percent.)
b. What bid should LTI submit for the totalorder of 100 units, assuming that learning continues?
c. What is the cost expected to be for the lastunit under the learning rate you estimated?

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Learning curve demonstrates connection between unit generation time and the aggregate number of unit created and is portrayed by a line it has immense appropriateness in the field of business and assembling by the method for evaluating the ideal opportunity for the item structure generation and costs it is additionally utilized for arranging corporate methodology viz evaluating choice capital investment and assurance of operating costs learning curve rate should be evaluated See Answer

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UNIT NUMBER	COST ($ MILLIONS)		UNIT NUMBER	COST ($ MILLIONS)
1	$	13.0	11	$	3.7
2		8.8	12		3.6
3		7.4	13		3.4
4		6.2	14		3.4
5		5.7	15		3.2
6		5.2	16		3.2
7		4.8	17		3.0
8		4.5	18		2.9
9		4.2	19		2.8
10		4.0	20		2.8