Suppose the daytime processing load consists of 70% CPU activity and 30% disk activity. Your customers are complaining that the system is slow. After doing some research, you have learned that you can upgrade your disks for $1,500 to make them 2.75 times as fast as they are currently. You have also learned that you can upgrade your CPU to make it 1.5 as fast for $2,000.

1. Which would you choose to yield the best performance improvement for the least amount of money?
2. Which option (the CPU the disk) would you choose if you don’t care about the money, but want a faster system?
3. What is the break-even point for the upgrades? That is, what price would we need to charge for the CPU (or the disk – change only one) so the result was the same cost per 1% increase for both?