6. NewApp Software Production is deciding whether to take on a new large client, which would necessitate additional hires and another rented workspace. Estimates of the rents and facilities costs per year are $550,000, and the new developers that the company must hire each cost $75,000 per year, including benefits. One new developer must be hired for each app produced per year. The company estimates that five developers will need to be hired based on initial estimates of the scope of work, which entails five completed apps currently priced at $150,000 each.

a. What is the minimum total value of the contract that NewApp must secure in order to break even?

b. How should NewApp price each completed app to ensure a total contribution of $1 million?

7. Solar Bright Dental Clinic rents two dental patient chairs (same model) for a total of 320 hours a month for use in the dental surgery. Last month the dental chair in room A was used for 80 hours and chair is room B was used for 96hours. What was each chair utilisation? Briefly outline one option the dentist may consider to improve the utilisation of the surgerys equipment.

8. NewApp Software Production (see Problem 6 above) estimates that it takes full year for each developer to produce one app. However, after a recent process audit, it was discovered that each developer, on average, spends only 25 hours a week directly working on the app. Assume developers work 9 hours a day, 5 days a week, 48 weeks a year. What is the process velocity? What does a ratio of greater than 1 imply?