SOLUTION: Part A
A leading firm requires a software for its internal use. The firm wants to evaluate whether it is less costly to have
its own programming staff and resources or to have pr
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A leading firm requires a software for its internal use. The firm wants to evaluate whether it is less costly to have
its own programming staff and resources or to have pr
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Question 1163860: Part A
A leading firm requires a software for its internal use. The firm wants to evaluate whether it is less costly to have
its own programming staff and resources or to have programs developed by an external development firm. The
cost of both options are a function of the number of lines of code. After the mathematical analysis it has been
estimated that the in-house development will cost $1.75 per line of code. In addition, annual overhead costs for
supporting the program will be $35000. While Software developed outside the firm costs, on average, $2.5 per
line of code.
a) How many lines of codes per year make costs of the two options equal?
