The abc corporation has purchased 50 pieces of a specially designed electronic component at $2,000 per unit. in the $2,000 selling price, $1,000 represents direct labor. instead of an 80% learning curve, the supplier believes that either a 85% or 90% learning curve will be more indicative of what will occur in the future (starting at unit 51). what would be the unit cost of labor for the next 350 units using a 85% learning curve and a 90% learning curve?

y = axb. y = cumulative average time per unit or batch. x = the cumulative units of production or, if in batches, the cumulative number of batches.

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?