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 code per year make costs of the two options equal? b) If programming needs are estimated at 35000 lines per year, what are the costs of the two options? c) In part b what would the in-house cost per line of code have to equal for the two options to be equally costly?

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 code per year make costs of the two options equal? b) If programming needs are estimated at 35000 lines per year, what are the costs of the two options? c) In part b what would the in-house cost per line of code have to equal for the two options to be equally costly?

Name: A leading firm requires a software for its internal use. The firm wan
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Description: A leading firm requires a software for its internal use. The firm wants to evaluate whether it isless costly to have its own programming staff and resources or to have programs developed by anexternal development firm. The cost of both options are a

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

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 code per year make costs of the two options equal?
b) If programming needs are estimated at 35000 lines per year, what are the costs of the two
options?
c) In part b what would the in-house cost per line of code have to equal for the two options to be
equally costly?

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