Question
Dear Tutor, appreciate you support to understand this problem as the unit cost need to be calculated. but the variable cost is not mentioned. please
Dear Tutor, appreciate you support to understand this problem as the unit cost need to be calculated. but the variable cost is not mentioned. please help?
A guy doing software coding. a company offer him $100,000 as contract to have the right to use his in their e.procurement software package. the right of use is up to 10,000 packages, if the e.procurement sells more than 10,000 packages the company will pay him $8 for each package sold beyond the 10,000 level.
REQUIRED
1. What is the unit cost of the company for the guy's software code included in its e. procurement package if it sells (a) 2,000, (b) 6,000, (c)10,000, and (d) 20,000 packages? Comment on the results.
2. For prediction of company's total cost of using the guy's software codeine. procurement,
which unit cost (if any) of (a) to (d) in requirement 1 would you recommend
company use? Explain.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started