Information Technology Project Management
9th Edition
ISBN: 9781337101356
Author: Kathy Schwalbe
Publisher: Cengage Learning
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Chapter 12, Problem 2DQ
Explanation of Solution
Make-or-Buy decision process and performing financial calculations in the Lease-or-Buy example:
- Make-or-Buy decision process is a strategic decision in the procurement function.
- In a Make-or-Buy decision process, the organization decides to carry out certain activities to deliver services or product, within the organization or hire a third party to do the same.
- It includes careful cost estimation for delivering a product and comparing them with the relevant cost after outsourcing this operation.
- Consider the example of Lease-or-Buy, if buying an equipment for a project of price $12,000, with a daily operational cost of $400, if incase we can even lease the same piece of equipment for $800 per d...
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An order will be accepted only if the product is in stock and the customer’s credit is OK. If both conditions are met, the order is accepted. Otherwise, the order is rejected. Then, the company decides that the credit manager can waive the customer’s credit requirement.
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Lawn Service Comparisons
(unless otherwise noted, dollars are
yearly)
Mowing, Trimming, Bagging (if
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Lawn
Lawn Service
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$1040
$125/cut
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Question 7
Each salesperson at IdzaaraAisya Inc. receives a commission based on the amount of his or her
sales. The commission rates and additional payment amounts are shown below.
Sales ($)
1-5,999.99
6,000–29,999.99
30,000 and over
Commission
10% of sales
$600 plus 13% of the sales over 6,000
$3,720 plus 14% of the sales over 30,000
Additional
$500 if the salesperson has worked at the company for over 10 years and the sales amount is at least
$10,000.
$700 if the salesperson travels.
Draw a flow chart. Calculate the commission, any additional amount, and the total due only
when the sales amount is greater than 0; otherwise, display $0.00 as the commission, additional
amount, and total due.
Chapter 12 Solutions
Information Technology Project Management
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