As CEO of WaterSpray Marine, Ramona Raney knows it is important to control costs and to respond quickly to changes in the highly competitive boat-building industry. When DMG Consulting proposes that WaterSpray 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 Chappel reports that the team and DMG estimate that if WaterSpray Marine implements the ERP system, it will incur the following costs: (Click the icon to view WaterSpray's anticipated project costs.) The team estimates that the ERP system should provide several benefits: (Click the icon to view WaterSpray's anticipated project benefits.) Read the reguirements. 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 WaterSpray Marine install the ERP system? Why or why not? Show your calculations. Cemplete the table below to calculate the expected net benefis (cests) of the project. (Use parentheses or a minus sign for net costs.) Expected benefiss Expected costs As CEO of WaterSpray Marine, Ramona Raney knows it is important to control costs and to respond quickly to changes in the highly competitive toat-buliding industry. When DMG Consulting proposes that WaterSpray Marine invest in an ERP system, she forms a team to evaluate the proposal the plant engineer, the plant foraman, the More info Costs of the Project a. $360,000 in sotware costs b. $87,000 to customize the ERP software and load WoterSpray's date into the now ERP system c. $112,000 for employee training More info Benefits of the Project a. More efficient order processing should lead to savings of $105,000. b. Streamlining the manufacturing process so that it maps into the ERP system will create savings of $275.000. c. Integrating purchasing, production, marketing. and distribution into a singte system will alow WaterSpray Marine to reduce inventories, saving $225,000. d. Higher customer satisfaction should increase sales, which, in turn, should increase profts by $140,000. Requirements 1. If the ERP installation succeeds, what is the dollar amount of the benefits? 2. Should WaterSpray Marine install the ERP system? Why or why not? Show your calculations. 3. Why did Raney create a team to evaluate DMG's proposal? Consider each piece of cost-benefit information that management accountant Chappel 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 WaterSpray 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 parenthesas or a minus sign for net costs.) Since the expected value of the beriefits the total costs, WaterSpray undertake the project. Requirement 3. Why did Raney create a team to evaluate DMG's proposal? Consider each plece of cost-benefit information that management accountant Chappel 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?) As CEO of WaterSpray Marine, Ramona Raney knows it is important to control costs and to respond quickly to changes in the highly competitiv 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 WaterSpray 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.) Since the expected value of the benefits the total costs, WaterSpray undertake the project. Requirement 3. Why did Raney create a reported. Which person on the team is m or benefit?) yposal? Consider each piece of cost-benefit information that management a each item? (Hint: Which team member is likely to have the most informatio are greater than are less than As CEO of WaterSpray Marine, Ramona Raney knows it is important to control costs and to respond quickly to changes in the highly competiti 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 WaterSpray 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.) Since the expected value of the benefits the total costs, WaterSpray undertake the project. Requirement 3. Why did Raney create a team to evaluate DMG's proposal? Consider e ifit information that management reported. Which person on the team is most likely to have contributed each item? (Hint: ; likely to have the most informati or benefit?) Requirement 1. If the ERP installation succeeds, what is the dollar amount of the benefits? If the ERP installetion succeeds, the dollar amount of the benefits is Requirement 2. Should WaterSpray 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.) Since the expected value of the benefits the total costs, WaterSpray undertake the project. Requirement 3. Why did Raney create a team to evaluste DMG's proposal? Consider each piece of cost-benefit information that management accountart Chappel reported. Which person on the toam is most likely to have contributed each item? (Hint: Which team momber is likely to have the most information about each coat or benefit?)
