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Matthew Bailey, as manager of Designs by Bailey, is upgrading his CAD software. The highperformance HP software rents for $ comma per month per workstation. The standardperformance SP software rents for $ comma per month per workstation. The productivity figures that he has available suggest that the HP software is faster for his kind of design. Therefore, with the HP software he will need engineers and with the SP software he will need This translates into a variable cost of $ per drawing for the HP system and $ per drawing for the SP system.
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