# Precise Software

Topics: Sales, Investment, Salary Pages: 7 (1563 words) Published: April 16, 2013
1.In assessing the value of Precise SQL for the user firm one has to consider increase in DBA productivity.

Assuming 52 weeks in a year, how many hours does a DBA save in a year because of Precise? 3 Points
DBA Hours Saved per year52 * 9.4488.8

DBA Hourly Wage (assuming 40 hours to a week)
3 Points
Unburdened DBA salary\$60,000
Hours worked Per Year52 * 402080
Burdened DBA salary1.33*\$60,000\$79,800

DBA Hourly Wage (unburdened)\$60,000/2080\$28.84
DBA Hourly Wage (burdened)\$79,800/2080\$38.36

Annual Saving for the customer firm

Hours saved per DBA per week9.4
Hours saved per DBA per year52 * 9.4489
Savings per DBA per year (unburdened)489*\$28.84\$14,102
Savings per DBA per year (burdened)489*\$38.36\$18,758
Average number of DBA's10

Annual savings for firm per year (unburdened)10*\$14,102\$141,020 Annual savings for firm per year (burdened)10*\$18,758\$187,580

2.Precise SQL also helps with respect to deferral of hardware replacement decision. Answer the following questions on hardware deferral

What is the probability of postponing hardware purchase for a year? Hint (a year has 12 months or four 3-month periods). 3 Points
Probability of postponed purchase (A) for 3 monthsP(A) = .6 Probability of making purchase (B)P(A) = 1-P(A).4
Probability of not making a hardware purchase for 1 yearP(A)4.1296

Hardware Cost Saving if postponed by a year 30%
1 Point

What is the average annual hardware budget affected by Precise? \$1,430,000 1 Point

Based on the above three pieces of information, what is the dollar savings due to deferral of hardware purchase?

Average annual hardware budget affected by Precise\$1,430,000 Hardware Cost Saving if postponed by a year30%
Probability of postponing by 3 months60%
Savings for three months(\$1,430,000*.3*.6)/4\$64,350
Dollar savings due to deferral of hardware purchase for one year(\$1,430,000*.3)\$429,000

5 Points

3.Precise SQL also enhances end-user productivity; please answer the following questions on end-user productivity (total 15 points).

Number of transactions per day: 194,000

Total time in seconds spent in these transactions in one day prior to precise? 2 Points

Average daily transactions processed by all users combined194,000 Average end user response time per transaction15
Total time in seconds15*194,0002,910,000

Total time in seconds spent per user per day:
2 Points
Total time in seconds to accomplish 194,000 transactions2,910,000 Number of simultaneous users215
Number of transactions per user194,000/215902
Total time in seconds spent per user per day:902*1513530

Total time spent per user in hours over one day?
2 Points
Total time in seconds spent per user per day:902*1513530
Total time spent per user in hours over one day13530/60*603.76

Assuming an 8 hour day - % time spent
2 Points

Total time spent per user in hours over one day13530/60*603.76 % of time spent3.76/8.47 (47% of user time)

Improvement in end-user response time per transaction: 25%

Based on the above two pieces of information, % of time saving:

Total time spent per user in hours over one day13530/60*603.76 % of time spent3.76/8.47 (47% of user time)
Improvement in end-user response time per transaction25%
% of time saving:.25*.4711.75%

Using information on time saving from above, the salary information, and information on burden rate , what is the \$ saving per user per year?

Average end user salary\$30,000
Burdened rate, average end user salary\$30,000*1.33\$39,900
\$ savings per user per year11.75%*\$39,900\$4,688

Using the above number, what is the saving for the firm (in dollars)?

\$ savings per user per year11.75%*\$39,900\$4,688
Number of users215
Total user savings for the firm215*\$4688\$1,007,920

4.Cost of selling a Single Unit of SQL (for 1999) :