i More Info i More Info Costs of the Project a. $435,000 in software costs b. $89,000 to customize the ERP software and load Bayshore's data into the new ERP system c. $135,000 for employee training a. Benefits of the Project More efficient order processing should lead to savings of $225,000. Streamlining the manufacturing process so that it maps into the ERP system will create savings of $280,000. Integrating purchasing, production, marketing, and distribution into a single system will allow Bayshore Marine to reduce inventories, saving $215,000. d. Higher customer satisfaction should increase sales, which, in turn, should increase profits by $170,000. b Print Done 1 Requirements Print Done Requirements 1. If the ERP installation succeeds, what is the dollar amount of the benefits? 2. Should Bayshore Marine install the ERP system? Why or why not? Show your calculations. 3. Why did Thornberg create a team to evaluate IDG's proposal? Consider each plece of cost-benefit information that management accountant Cullen 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?) hused cells blank.) Print Done As CEO of Bayshore Marine, Rachel Thomberg knows it is important to control costs and to respond quickly to changes in the highly competitive boat-building industry. When IDG Consulting proposes that Bayshore 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 Culler reports that the team and IDG estimate that if Bayshore Marine implements the ERP system, it will incur the following costs: (Click the icon to view Bayshore Marine's anticipated project costs.) The team estimates that the ERP system should provide several benefits: i (Click the icon to view Bayshore Marine's anticipated project benefits.) 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 Bayshore 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, Bayshore undertake the project. Requirement 3. Why did Thornberg create a team to evaluate IDG's proposal? Rachel Thornberg formed a team to evaluate the feasibility of installing an ERP system for the following reasons. (Leave unused cells blank.) Consider each piece of cost-benefit information that management accountant Cullen 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?) (Leave unused cells blank.) Consider each piece of cost-benefit information that management accountant Cullen 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?) (Leave unused cells blank.) 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 f. Savings from more efficient order processing g. Savings from streamlining the manufacturing process h. Evaluate the effects of integrating purchasing, production, 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 i More Info i More Info Costs of the Project a. $435,000 in software costs b. $89,000 to customize the ERP software and load Bayshore's data into the new ERP system c. $135,000 for employee training a. Benefits of the Project More efficient order processing should lead to savings of $225,000. Streamlining the manufacturing process so that it maps into the ERP system will create savings of $280,000. Integrating purchasing, production, marketing, and distribution into a single system will allow Bayshore Marine to reduce inventories, saving $215,000. d. Higher customer satisfaction should increase sales, which, in turn, should increase profits by $170,000. b Print Done 1 Requirements Print Done Requirements 1. If the ERP installation succeeds, what is the dollar amount of the benefits? 2. Should Bayshore Marine install the ERP system? Why or why not? Show your calculations. 3. Why did Thornberg create a team to evaluate IDG's proposal? Consider each plece of cost-benefit information that management accountant Cullen 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?) hused cells blank.) Print Done As CEO of Bayshore Marine, Rachel Thomberg knows it is important to control costs and to respond quickly to changes in the highly competitive boat-building industry. When IDG Consulting proposes that Bayshore 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 Culler reports that the team and IDG estimate that if Bayshore Marine implements the ERP system, it will incur the following costs: (Click the icon to view Bayshore Marine's anticipated project costs.) The team estimates that the ERP system should provide several benefits: i (Click the icon to view Bayshore Marine's anticipated project benefits.) 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 Bayshore 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, Bayshore undertake the project. Requirement 3. Why did Thornberg create a team to evaluate IDG's proposal? Rachel Thornberg formed a team to evaluate the feasibility of installing an ERP system for the following reasons. (Leave unused cells blank.) Consider each piece of cost-benefit information that management accountant Cullen 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?) (Leave unused cells blank.) Consider each piece of cost-benefit information that management accountant Cullen 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?) (Leave unused cells blank.) 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 f. Savings from more efficient order processing g. Savings from streamlining the manufacturing process h. Evaluate the effects of integrating purchasing, production, 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