![]() My total costs are my fixedĬosts plus my variable costs. To be equal to F7, right? That's cell F7 plus this To- and I'm just using my arrow keys right now- it's going To be my total costs? My total costs are my fixedĬosts plus my variable costs. Let me scroll over so we can seeĮverything a little bit better. Me scroll this over so that you can see the cells. I pressed Shift + 8 to get that snowflake. Per programmer times- that little snowflake, So here I'm going to writeĮquals, and I'm going to write, it's going to be $10,000 ![]() Total variable costs are going to be $10,000 times Goodies that they will eat from the company Of their health insurance, you include the extra So if you include theĬost of their salary, if you include the cost $15,000 in fixed costs no matter how many So I'm going to go into ExcelĪnd go to this little bottom right right over here. And that's not going toĬhange regardless of however many programmers I have. Say, $10,000 a month and then another $5,000 a month Salary to essentially help spec out what this That's not goingįixed cost, let's say I have a product managerįor this project. Video, my fixed costs will be the office spaceĪnd the electricity and let's assume I just haveĪn office that can accommodate any number of these programmers. I hire for this project? And for the sake of this To spend no matter how many software engineers Going to think about is what are my fixed costs? So what am I going Way of measuring productivity for software engineers. Things because someone can write good lines Of code isn't maybe the best way to measure Other studies or industry studies or our pastĮxperience, this tells us how many lines of programmingĬode we can get per month. Here- this is a spreadsheet so I'm not going toīe able to write. Programmers we should hire, at least think about So, basically, the answer is it depends on the nature of the work, and how the labour will be organized. Another scenario would be workers bring other skills or knowledge to the table that they share with the other workers that results in the other workers becoming more productive as individuals (they would be more productive as workers after, even if they left the team) The additional worker would do this once for the day and then be productive painting all day. This would increase marginal productivity, because one worker wouldn't have to waste all his time setting up the spray booth, putting on a respirator, etc. One worker builds chairs, and the other worker paints them. However, suppose that the workers specialize. they aren't really receiving a benefit to their work from the other workers, but instead are losing out on productivity through meetings and coordination) then you would expect the marginal product to fall straight away If the workers are basically doing the same type of work, and then need to coordinate (i.e.
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