Answer:
Total cost to build the last unit = $89,227.92
Explanation:
Focus on time required to build 22nd unit (2 new unit + 20 existing unit guidance control)
Learning rate for labour hours = Time for the second unit / Time for the first unit
Learning rate for labour hours = 4500 hours /5000 hours
Learning rate for labour hours = 0.90
Learning rate for material and equipment usage = Material and equipment cost for the second item / Material and equipment cost for the first item
Learning rate for material and equipment usage = $24.000 / $30,000
Learning rate for material and equipment usage = 0.80
Using learning curve table, the time required to build 22nd unit = 3,125.49 hours. Using learning curve table, the material and equipment cost to build 22nd unit = $11,090.67
Labour cost to build 22nd unit at $25 per hour = $25 * $3125.49 = $78,137.25
Hence, the total cost to build the last unit = Labour cost + Material and equipment cost
Total cost to build the last unit = $78,137.25 + $11,090.67
Total cost to build the last unit = $89,227.92