The volume will be 90 drawings pet month then renting

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Matthew Bailey as manager of Designs by Bailey is upgrading his CAD software. The high performance (HP) software rents for $3,000 per month per workstation.

The standard performance (SP) software rents for $1, 600 per month per workstation. The productivity figures that no has available suggest that the HP software is faster for his kind of design. Therefore with the HP software he will need 5 engineers and with the SP software he will need 6.

This translates into a variable cost of $200 per drawing for the HP system and $250 per drawing for the SP system.

If it is protected that the volume will be 90 drawings pet month then renting _________ software is the best option available to Matthew.

Reference no: EM131861263

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