ITPEC IP October 2020 Question 55
ITPEC IP October 2020 — Question 55 of 100
Company A provides both the shorter development period and the lower total cost. For 50 sequential programs, A needs 50 × 2 = 100 days and costs 100 × 40,000 = 4,000,000 yen. B needs 150 days and costs 150 × 30,000 = 4,500,000 yen.
Answer (a)
Why not others:
- B's daily rate is lower, but each program takes an extra day
- total cost depends on daily rate multiplied by total days, not daily rate alone
- therefore the other combinations incorrectly assign at least one advantage
Key rule: Compare duration from productivity first, then calculate total cost using duration × cost per day.
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