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Corp., an international retail giant, is considering implementing a new business-to-business (B2B) information system for processing purchase orders. The current system costs per month and

Corp., an international retail giant, is considering implementing a new business-to-business (B2B) information system for processing purchase orders. The current system costs per month and per order. has two options: a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of per month and a variable cost of per order. The fully automated B2B system will have fixed costs of per month and variable costs of per order. Based on data from the last two years, has determined the following distribution on monthly orders:

Prepare a table showing the cost of each plan for each quantity of monthly orders.

2. What is the expected cost of each plan?

3. In addition to the information systems costs, what other factors should

Realmart

consider before deciding to implement a new B2B system?

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