document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1173642>Question 1173642</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Question No. 1:<BR>\n" );
document.write( "Part  -  A:<BR>\n" );
document.write( "A leading firm requires a software for its internal use. The firm wants to evaluate whether it is less<BR>\n" );
document.write( "costly to have its own programming staff and resources or to have programs developed by an<BR>\n" );
document.write( "external development firm. The cost of both options are a function of the number of lines of code.<BR>\n" );
document.write( "After the mathematical analysis it has been estimated that the in-house development will cost $1.75<BR>\n" );
document.write( "per line of code. In addition, annual overhead costs for supporting the program will be $35000.<BR>\n" );
document.write( "While Software developed outside the firm costs, on average, $2.5 per line of code.<BR>\n" );
document.write( "a) How many lines of code per year make costs of the two options equal?<BR>\n" );
document.write( "b) If programming needs are estimated at 35000 lines per year, what are the costs of the two<BR>\n" );
document.write( "options?<BR>\n" );
document.write( "c) In part b what would the in-house cost per line of code have to equal for the two options to be<BR>\n" );
document.write( "equally costly?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #798948 by </B><A HREF=/tutors/aboutme.mpl?userid=mila+nedic><B>mila nedic(19)</B></A><img src=\"/images/stars/stars-06.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=mila+nedic><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=mila+nedic><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=798948\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> First let's say that x is the number of lines of code, h=cost of the in house programming development, and s=cost of software developed outside the firm.\r<BR>\n" );
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document.write( "a) Here we want to figure out when h=s<BR>\n" );
document.write( "   h=35000+1.5x (formula for annual inhouse cost)<BR>\n" );
document.write( "   s=2.5x  (formula for annual outside cost)<BR>\n" );
document.write( "   If h=s then 35000+1.5x=2.5x (subtract 1.5x from each side to get variable on one side)<BR>\n" );
document.write( "                        x=35000<BR>\n" );
document.write( "   Therefore 35000 lines of code need to be made per year to make the costs equal.\r<BR>\n" );
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document.write( "b) We will input 35000 instead of x because it is the number of lines of code<BR>\n" );
document.write( "   h=35000+1.5*35000<BR>\n" );
document.write( "    =$87500           <BR>\n" );
document.write( "It was already established that with 35000 lines of code both costs will be equal but we will find the value for \"s\" just to check if our answer for a was correct.<BR>\n" );
document.write( "   s=2.5*35000<BR>\n" );
document.write( "    =$87500 (they are both the same)<BR>\n" );
document.write( "   Therefore the costs of both options is $87500\r<BR>\n" );
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document.write( "c) Since the options are already equally costly the inhouse cost per line would be the same as it already is which would be $1.5 </SPAN>\n" );
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