Advanced Development Corp is a software development company. They have been asked to develop an "R" program for big data analysis. Having no "R" developer on staff, the company must decide to hire a new programmer or outsource the "R" work to an outside company. Hiring a new developer would require a salary of $120,000 and an additional 20% for benefits. A part-time assistant would need to be hired at $20 per hour for 20 hours per week. ADC spent $75,000 on new cubicles and desktops last year and has the capacity to house the new hires. The outside developer would charge a $50,000 signing bonus plus $200 per code module. A code module requires about 10 hours of work and 50 modules would be required to create a complete application. In addition, the outside developer would charge $500 for each module for QA. What is the relevant cost for hiring a new developer?

Box 1: Select the best answer