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

Answer 1

Answer:

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