Buyer Placed Order Supplier 100 Pieces Per Unit Price 281 Collected Following Cost Data Ma Q35184177

A buyer has placed an order with a supplier for 100 pieces at aper-unit price of $281 and has collected the following costdata:

Material$100

Direct labor$50 (5 hours at $10 per hour)

Overhead$75 (150% of direct labor)

Total costs$225

Profit (25%) $56

Total per unit$281

The buyer now wants to place an order for an additional 700pieces.

Assignment Question

1.What do you estimate the buyer should pay per unit for thenext 700 pieces assuming the supplier demonstrates a 75% learningcurve? What if the learning rate is actually 85%? What do youestimate is the per unit cost of the next 700 pieces?