Requirements

1.	Compute the support cost of customizing FertiMix for each customer using each cost-estimating approach.
2.	If the activity analysis is reliable, what are the pros and cons of adopting it for all Des Moines's software products?

Data Table Customer Garden Plants Tomorrow Blooms $ 16,000 $ 16,000 Basic cost of FertiMix Lines of customized code Estimated cost per line of customized code 460 130 $ 20 20 Print Done Des Moines Software develops and markets computer software for the agriculture industry. Because support costs are a large portion of the cost of software development, the director of cost operations of Des Moines, Brenda Paton, is especially concerned with understanding the effects of support cost behavior. Paton has completed a preliminary activity analysis of one of Des Moines's primary software products: FertiMix (software to manage fertilizer mixing). This product is a software template that is customized for specific customers, who are charged for the basic product plus customizing costs. The activity analysis is based on the number of customized lines of FertiMix code. Currently, support cost estimates are based on a fixed rate of 40% of the basic cost. Data are shown for two recent customers: (Click the icon to view the data.) Requirements 1. Compute the support cost of customizing FertiMix for each customer using each cost-estimating approach. 2. If the activity analysis is reliable, what are the pros and cons of adopting it for all Des Moines's software products? Requirement 1. Compute the support cost of customizing FertiMix for each customer using each cost-estimating proach. Support Costs Allocated Cost driver Garden Plants Tomorrow Blooms Percent of basic cost 13000 13000 Lines of customized code 65000 65000