Assignment:
You and your company have just received 6 units of a special subassembly from an electric parts manufacturer at a price of $320 per unit. A new order has also just come in for your company’s product that uses these subassemblies, and you wish to purchase 30 more to be shipped in lots of 6 units each. (The subassemblies are bulky, and you need only 6 a month to fill your new order.)
a. Assuming a 60 percent learning curve by your supplier on a similar product last year, how much should you pay for each lot? Assume that the learning rate of 60 percent applies to each lot of 6 units, not each unit. (Round your answers to 2 decimal places.)
Unit Cost
1st six $
2nd six
3rd six
4th six
5th six
b. Suppose you are the supplier and can produce 18 units now but cannot start production on another 12 units for two months. What price would you try to negotiate for the last 12 units? (Round your answer to 2 decimal places.)
Provide complete and step by step solution for the question and show calculations and use formulas.