Johnson Industries received a contract to develop and produce four high-intensity long- distance receiver/transmitters for cellular telephones. The 1st took 2,000 labor hours and $39,000 worth of purchased and manufactured parts; the 2nd took 1,500 labor hours and $37,050 in parts; the 3rd took 1,450 labor hours and $31,000 in parts; the 4th took 1,275 labor hours and $31,492 in parts.
Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. Ignoring any forgetting factor effects, what should Johnson estimate time and parts costs to be for the dozen units? (Hint: There are two learning curves)