Question: Plotting Points Possible Fixed Variable Locations Costs/mo. Costs/unit TCo=0 TCQ=3,300 Make $6,500 $11.70 Buy $ 10,500 $ 8.80 What is the break even point? How

Plotting Points Possible Fixed Variable Locations

Plotting Points Possible Fixed Variable Locations Costs/mo. Costs/unit TCo=0 TCQ=3,300 Make $6,500 $11.70 Buy $ 10,500 $ 8.80 What is the break even point? How many items? Analyze the results. . Sheila is the project manager for an IT project to develop a software system. She calculates that the in-house solution will cost the company $200,000 to create the software package and $10,000 per month to maintain the software. Mark, the buyer for the project informs Sheila that it would cost $150,000 to purchase the software. The supplier requires an extra $10,000 to make some changes to the software to fit with the project requirements. He is also asking for a $14,000 monthly maintenance fee. 1. What is the difference between making the software and buying it? (without maintenance fees) 2. What is the difference in supporting the software per month. 3. If the software is to be replaced after one year, is it better to buy or make this software? 4. How much would they save by following your suggestion

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