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Required 1. What is the unit cost of ECG for Heninger's software code included in its eprocurement package if it sells (a) 2,200 , (b)
Required 1. What is the unit cost of ECG for Heninger's software code included in its eprocurement package if it sells (a) 2,200 , (b) 5,200 , (c) 8,000 , and (d) 12,000 packages? Comment on the results. 2. For prediction of ECG's total cost of using Heninger's software code in eprocurement, which unit cost (if any) of (a) to (d) in requirement 1 would you recommend ECG use? Explain. Rachel Heninger is a well-known software engineer. Her specialty is writing software code used in maintaining the security of credit card information. Heninger is approached by the Edmonton Commerce Group (ECG). It offers to pay her $72,000 for the right to use her code under licence in its eprocurement software package. Heninger rejects this offer because it provides her with no additional benefits if the eprocurement package is a runaway success. Both parties eventually agree to a contract in which ECG pays Heninger a flat fee of $72,000 for the right to use her code in up to 8,000 packages. If eprocurement sells more than 8,000 packages, Heninger receives $5.40 for each package sold beyond the 8,000 level. Click the icon to see the Worked Solution. Requirement 1. What is the unit cost of ECG for Heninger's software code included in its eprocurement package if it sells (a) 2,200 , (b) 5,200 , (c) 8,000 , and (d) 12,000 packages? Comment on the results. Find the unit cost for each number of packages sold. (Round your answers to the nearest cent as needed.) Comment on the results from the previous step. Choose the correct answer below. omment on the results from the previous step. Choose the correct answer below. A. The unit cost decreases as the number of packages sold increases. The total cost is a fixed cost up to 8,000 units and then is a variable cost beyond 8,000 units. B. The unit cost increases as the number of packages sold increases. The total cost is a variable cost based on the number of packages sold. C. The unit cost is fixed as the number of packages sold increases until 8,000 , and then the unit cost decreases. The total cost is a variable cost up to 8,000 units and then is a fixed cost beyond 8,000 units. D. The unit cost decreases as the number of packages sold increases until 8,000, and then the unit cost increases. The total cost is a fixed cost up to 8,000 units and then is a variable cost beyond 8,000 units
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