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You are the owner of a small software development company specializing in custom software solutions for financial firms. A major client, Zions Bancorporation, has approached
You are the owner of a small software development company specializing in custom software solutions for financial firms. A major client, Zions Bancorporation, has approached you with a request for a specialized software solution that would require the purchase and integration of a new, advanced server costing $300,000. The server is unique to Zions' project requirements. The marginal cost for developing the software, including minor hardware and regular maintenance per client, is $0.50 per user. You're negotiating with Zions on a price per user for the software solution, and you haven't made the investment in the new $300,000 server yet. The minimum price per user you would accept (i.e. the break-even price) for this order assuming Zions wants to service 1,500,000 users is $ Question Blank 1 of 2 0.70 . (your answer should look like this: x.xx where the x's represent numbers - including zero if applicable) Suppose you make the investment in the new $300,000 server. How would making this investment change the minimum price per user that you would accept? The minimum price per user Question Blank 2 of 2 reduces to the marginal cost alone, as the server cost becomes a sunk cost
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