1) If a company took 100 hours to assemble their first unit and 90 hours to assemble the second unit, we might expect it to take:

72.25 hours to assemble the fourth unit.

70 hours to assemble the third unit.

72.25 hours to assemble the third unit.

81 hours to assemble the fourth unit.

2) It cost a contractor $12,750 to manufacture their first unit. The company expects to experience a 92% unit learning curve. Estimate the cost of the 10th unit. (Round intermediate calculations to 4 decimal places)

$15,661

$10,380

$9,665

$11,985