As CEO ofOceanSide Marine?, Dana Stuckey knows it is important to control costs and to respond quickly to changes in the highly competitive? boat-building industry. When ABCABC Consulting proposes that OceanSide 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 Cook reports that the team and ABCABC estimate that if OceanSide Marine implements the ERP? system, it will incur the following? costs:

Costs of the Project

a.$420,000 in software costs

b.$90,000 to customize the ERP software and load OceanSide?'s data into the new ERP system

c.$112,000 for employee training

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

$757,000

.

Requirement 2. Should

AquaBoat MarineAquaBoat 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)