As CEO of SeaSide 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 SeaSide 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 Mathew Chumura reports that the team and BDG estimate that if SeaSide Marine implements the ERP system, it will incur the following costs (Click the icon to view SeaSide's anticipated project costs.) The team estimates that the ERP system should provide several benefits Click the icon to view SeaSide's anticipated project benefits.) Read the requirements ne qu om Expe Expe Net t Since More info Costs of the Project a. $435,000 in software costs b. $119,000 to customize the ERP software and load SeaSide's data into the new ERP system c. $110,000 for employee training Print Done Benefits of the Project a. More efficient order processing should lead to savings of $180,000. 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 SeaSide Marine to reduce inventories, saving $210,000. d. Higher customer satisfaction should increase sales, which, in turn, should increase profits by $140,000. 1. If the ERP installation succeeds, what is the dollar amount of the benefits? 2. Should SeaSide Marine install the ERP system? Why or why not? Show your calculations. 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?) 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 Seaside 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, SeaSide undertake the project