Medco, Inc. manufactures microsurgical instruments used in products such as minimally invasive surgical procedures. The primary customers for these products are hospitals. Hospitals require that the learning curves be employed in the bid process for awarding contracts. Medco is planning to bid on a 350-unit contract offered by Ohio State Medical Center. Medco estimates that the first unit will require 126 hours of direct labor to produce. The industry learning curve for this particular type of product is 78 percent. Question 1 options: What is the labor cost for the 3rd unit? Question 2 options: What is the average labor cost for the first five units? Question 3 options: What is the average labor cost for the first 25 units? (Hint: use the first five units as base unit) What is the average labor cost for the first 100 units? (Hint: please use the first 25 units as base unit) What is the average cost for the first 350 units? (Hint: Please use the first 100 units as base unit).

1. Medco, Inc. manufactures microsurgical instruments used in products such as minimally invasive
surgical procedures. The primary customers for these products are hospitals. Hospitals require
that the learning curves be employed in the bid process for awarding contracts. Medco is planning
to bid on a 350-unit contract offered by Ohio State Medical Center. Medco estimates that the first
unit will require 126 hours of direct labor to produce. The industry learning curve for this particular
type of product is 78 percent. Question 1 options: What is the labor cost for the 3rd unit? Question
2 options: What is the average labor cost for the first five units? Question 3 options: What is the
average labor cost for the first 25 units? (Hint: use the first five units as base unit) What is the
average labor cost for the first 100 units? (Hint: please use the first 25 units as base unit) What is
the average cost for the first 350 units? (Hint: Please use the first 100 units as base unit)