Reference no: EM132719062
Question: Total cost and unit cost. Susan Wang is a well-know software engineer.
Her specialty is writing software code used in maintaining the security of credit-card information. Wang is approached by the Electronic Commerce Group (ECG). They offer to pay her $100,000 for the right to use her code under license in their e.procurement software package. Wang reject this offer because it provides her with no upside if the e.procurement package is a runaway succes. Both parties eventually agree to a contract where ECG pays Wang a flat fee of $100,000 for the right to use her code in up to 10,000 package. If e.procurement sells more than 10,000 package, Wang receives an additional $8 for each package sold beyond the 10,000 level.
Ditanyakan :
1. What is the unit cost to ECG of Wang's software code include in its e.procurement package if it sells (a) 2,000 package, (b) 6,000 package, (c) 10,000 package, (d) 20,000 package ? comment on the results.
2. To predict ECG's total cost of using Wang's software code in e.procurement, which unit cost (if any) of (a) to (d) in requirement I would you recommend ECG use ? Explain.
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