As CEO of AquaBoat Marine, Rhonda Wilson knows it is important to control costs and to respond quickly to changes in the highly competitive boat-building industry. When BDG 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 Marcus Chumura reports that the team and BDG estimate that if AquaBoat Marine implements the ERP system, it will incur the following costs: (Click the icon to view AquaBoat's anticipated project costs.) The team estimates that the ERP system should provide several benefits: (Click the icon to view AquaBoat's anticipated project benefits.) Read the requirements. 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 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) Since the expected value of the benefits the total costs, AquaBoat undertake the project. Requirement 3. Why did Wilson create a team to evaluate BDG's proposal? Consider each piece of cost-benefit information that management accountant Chumura 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?) Wilson formed a team to evaluate the feasabilty of installing an ERP system for the following reasons. (If a box is not used in the table, leave the box empty; do not select a label.) Consider each piece of cost-benefit information that management accountant Chumura 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 a box is not used in the table, leave the box 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 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 More Info Costs of the Project a. $390,000 in software costs b. $89,000 to customize the ERP software and load AquaBoat's data into the new ERP system c. $110,000 for employee training Print Done More Info Benefits of the Project a. More efficient order processing should lead to savings of $190,000. b. Streamlining the manufacturing process so that it maps into the ERP system will create savings of $265,000. C. Integrating purchasing, production, marketing, and distribution into a single system will allow AquaBoat Marine to reduce inventories, saving $225,000. d. Higher customer satisfaction should increase sales, which, in turn, should increase profits by $145,000. Print Done As CEO of AquaBoat Marine, Rhonda Wilson knows it is important to control costs and to respond quickly to changes in the highly competitive boat-building industry. When BDG 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 Marcus Chumura reports that the team and BDG estimate that if AquaBoat Marine implements the ERP system, it will incur the following costs: (Click the icon to view AquaBoat's anticipated project costs.) The team estimates that the ERP system should provide several benefits: (Click the icon to view AquaBoat's anticipated project benefits.) Read the requirements. 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 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) Since the expected value of the benefits the total costs, AquaBoat undertake the project. Requirement 3. Why did Wilson create a team to evaluate BDG's proposal? Consider each piece of cost-benefit information that management accountant Chumura 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?) Wilson formed a team to evaluate the feasabilty of installing an ERP system for the following reasons. (If a box is not used in the table, leave the box empty; do not select a label.) Consider each piece of cost-benefit information that management accountant Chumura 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 a box is not used in the table, leave the box 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 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 More Info Costs of the Project a. $390,000 in software costs b. $89,000 to customize the ERP software and load AquaBoat's data into the new ERP system c. $110,000 for employee training Print Done More Info Benefits of the Project a. More efficient order processing should lead to savings of $190,000. b. Streamlining the manufacturing process so that it maps into the ERP system will create savings of $265,000. C. Integrating purchasing, production, marketing, and distribution into a single system will allow AquaBoat Marine to reduce inventories, saving $225,000. d. Higher customer satisfaction should increase sales, which, in turn, should increase profits by $145,000. Print Done