As CEO of AquaBoat Marine$,$ Dana Stuckey knows it is important to control costs and to respond quickly to changes in the highly competitive$$ boat$-$building industry. When IDG Consulting proposes that AquaBoat Marine invest in an ERP$$ system, she forms a team to evaluate the$$ proposal: the plant$$ engineer, the plant$$ foreman, the systems$$ specialist, the human resources$$ director, the marketing$$ director, and the management accountant. A month$$ later, management accountant Mark Cobalt reports that the team and IDG estimate that if AquaBoat Marine implements the ERP$$ system, it will incur the following$$ costs:

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The team estimates that the ERP system should provide several$$ benefits:

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Part $1$

Requirement $1.$ If the ERP installation$$ succeeds, what is the dollar amount of the$$ benefits?

If the ERP installation succeeds, the dollar amount of the benefits is

$.$

Part $2$

Requirement $2.$ Should AquaBoat Marine install the ERP$$ system? Why or why$$ not? Show your calculations.

Complete the table below to calculate the expected net benefits$($costs$)$ of the project. $($Use parentheses or a minus sign for net$$ costs.$)$

Expected benefits

Expected costs

Net benefits $($costs$)$

Part $3$

Since the expected value of the benefits

$$

are greater than

are less than

the total$$ costs, AquaBoat

$$

should not

should

undertake the project.

Part $4$

Requirement $3.$ Why did Thornberg create a team to evaluate IDG$\text{'}$s $$proposal$?$ Consider each piece of$$ cost$-$benefit information that management accountant Cobalt reported. Which person on the team is most likely to have contributed each$$ item? $($Hint: Which team member is likely to have the most information about each cost or$$ benefit?$)$

Thornberg formed a team to evaluate the feasabilty of installing an ERP system for the following reasons. $($If an input field is not used in the$$ table, leave the input field$$ empty; do not select a$$ label.$)$

Part $5$

Consider each piece of$$ cost$-$benefit information that management accountant Cobalt reported. Which person on the team is most likely to have contributed each$$ item? $($Hint: Which team member is likely to have the most information about each cost or$$ benefit?$)($If an input field is not used in the$$ table, leave the input field$$ empty; do not select a$$ label.$)$

a$.$

Estimating software costs

b$.$

Estimating cost of loading data into the new ERP system

c$.$

Customize the ERP software

d$.$

Estimate customization costs

e$.$

Estimate training costs

f$.$

Savings from more efficient order processing

g$.$

Savings from streamlining the manufacturing process

h$.$

Evaluate the effects of integrating purchasing, production,

marketing, and distribution into a single system

i$.$

Estimate increase in sales from higher customer satisfaction

j$.$

Estimate benefits and costs

Since the expected value of the benefitsAquaBoatthe total costs, AquaBoatundertake the project.