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What is unit cost of the company for the guy software code

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Reference no: EM132130262

Question - A guy doing software coding. A company offers him $100,000 as contract to have the right to use his in their procurement software package. The right of use is up to 10,000 packages, if the 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.

Reference no: EM132130262

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