Mid-West Gas wants to move its sales order system online. Under the proposed system, gas stations and other merchants will use a secure site to check the availability and current price of various products and place an order. Currently, customer service representatives take dealers' orders over the phone; they record the information on a paper form, then manually enter it into the firm's computer system, (Click the icon to view additional information.) Carlton revises her estimates of the benefits from the new system's lower labor costs. She now thinks the savings will be only S936,000. Requirements 1. Compute the expected benefits of the online ordering system 2. Would you recommend that Mid-West Gas accept the proposal? 3. Before Carlton makes a final decision, what other factors should she consider? CFO Martha Carlton believes that dealers will not adopt the new online system unless Mid-West Gas provides financial assistance to help them purchase or upgrade their computer systems. Carlton estimates this one-time cost at $765.000. Mid-West Gas will also have to invest $140,000 in upgrading its own computer hardware. The cost of the software and the consulting fee for installing the system will be $235.000. The online system will enable Mid-West Gas to eliminate 25 clerical positions. Carlton estimates that the benefits of the new system's lower labor costs will have saved the company $1.410,000. i Cost Information - X CFO Martha Carlton believes that dealers will not adopt the new online system unless Mid-West Gas provides financial assistance to help them purchase or upgrade their computer systems Carlton estimates this one-time cost at $765,000. Mid-West Gas will also have to invest $140,000 in upgrading its own computer hardware. The cost of the software and the consulting fee for installing the system will be $235.000. The online system will enable Mid - West Gas to eliminate 25 clerical positions. Carlton estimates that the benefits of the new system's lower labor costs will have saved the company $1.410.000