c Determine the order quantities and the holding and set up cost for each of

C determine the order quantities and the holding and

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c) Determine the order quantities and the holding and set-up cost for each of three versions of software.
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!"% ∗!"" !"% ∗!"" !"% ∗!"" d) The developer of the software has come up with the following improvement. The user buys generic software instead of three different versions at the store, and is given permission to install one particular version of the software after registering the product online. If this improvement is implemented, the developer will charge $120 per copy. Should CSS agree to the implementation of this improvement? Why/Why not? Show your calculations clearly. λ ! =        
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Unit Cost:Annual Opportunity Cost:  ? !" = ??? ! ∗ ? ! = ! ∗ 51 = 25.5 ??=?∗? =∗ !" =1.65∗25.5≈42?? ??? 2 K = $25/order c = $120/unit  F = 24%  New EOQ: TotalCost:  ? ! = !!" = !∗!"∗!"!" ≈ 92 units/order  ! !"%∗!"# ??? ? =?∗ = ! +h∗ ! ! +?? + ! ! ! ! =25∗ !"!" +24%∗120 !" +42 =$3,851.4 Based on holding and setup costs, CSS should agree with the  improvement option.  Purchasing costs,  c, comparison additional to holding and setup  λ costs comparison changes the result as follows:  Original Case:  ??? = $5,592 + 100 ∗ 4848 = 490,392 Improvement Option:  ??? = $3,851.4 + 120 ∗ 4848 = 585,611.4 Based on total costs, CSS should not agree with the improvement  option 
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