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Mid-West Gas wants to move its sales order system Requirement online. Under the proposed system, gas stations and other Use a cost-benefit analysis to recommend

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Mid-West Gas wants to move its sales order system Requirement online. Under the proposed system, gas stations and other Use a cost-benefit analysis to recommend to Abbott merchants will use a secure site to check the availability whether Mid-West Gas should proceed with the online and current price of various products and place an order. ordering system. Give your reasons, showing supporting Currently, customer service representatives take dealers calculations. 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.) (Use parentheses or a minus sign when entering a net cost.) Expected benefits Expected costs N Net benefits (costs) Cost Information - X CFO Martha Abbott 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 network. Abbott estimates this one-time cost at $765,000. Mid-West Gas will also have to invest $155,000 in upgrading its own computer hardware. The cost of the software and the consulting fee for installing the system will be $225,000. The online system will enable Mid-West Gas to eliminate 25 clerical positions. Abbott estimates that the benefits of the new system's lower labor costs will have saved the company $1,360,000

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