Question: From Production Cost Control. Chapter 2 An Introduction to cost terms and purposes. What is the computing and interpreting manufacturing costs associated with this problem?

From "Production Cost Control". Chapter 2 An Introduction to cost terms and purposes. What is the computing and interpreting manufacturing costs associated with this problem?

From "Production Cost Control". Chapter 2 An Introduction to cost terms and

2-2] Total costs and unit costs. Susan Hiring is a wellknown software engineer. Her speciality is writing software code used in maintaining the seem-it},F of credit card information. 'Wang is approached by the Electronic Commerce Group (ECG). They offer to pay her $100,000 for the right to use her code under license in their e. procm'ement software package. "Wang rejects this offer because it provides her with no additional benets if the e. procurement package is a runan'a}r success. Both par- ties errentuall;r agree to a contract in which ECG pays 'Wan g a at fee of $ 100,000 for the right to use her code in up to 10,000 packages. if e. procurement sells more than 10,000 packages, \"Fang receives $3 for each package sold beyond the 10,0001evei. REQUIRED I. What is the unit cost of ECG for "id'sng's software code included inits e. procure ment package if it sells (a) 2,000, (b) 6,000, (c) 10,000, and (d) 20,000 packages? Comment on the results. 2. For prediction of ECG's totai cost of using Wang's software code in e. procure ment, which unit cost (ifanjr) of {a} to (d) in requirement 1 would you recommend ECG use? Explain

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