What is the break -even point for upgrades

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Reference no: EM1366591

Suppose the daytime processing load consists of 60% CPU activityand 40% disk activity. Your customers are complaining that thesystem is slow. After doing some research, you learn that you canupgrade your disks for $8,000 to make them 2.5 times as fast asthey are currently. You have also learned that you can upgrade yourCPU to make it 1.4 times as fast for $5,000.

a) Which would you choose to yield the best performance improvementfor the least amount of money?

b) Which option would you choose if you don't care about the money,but want a faster system?

c) what is the break -even point for the upgrades ?that is , what price would we need to charge for the CPU (or the disk -change only one) so the result was the same cost per 1% increase for both?

Reference no: EM1366591

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