P1-28A (similar to) :3 Question Help Northern 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.) Requirement Use a cost-benefit analysis to recommend to Smith whether Northern Gas should proceed with the online ordering system. Give your reasons, showing supporting calculations. (Use parentheses or a minus sign when entering a net cost.) Expected benefits Expected costs Net benefits (costs) Cost Information CFO Lori Smith believes that dealers will not adopt the new online system unless Northern Gas provides financial assistance to help them purchase or upgrade their computer network. Smith estimates this one-time cost at $735,000. Northern 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 $245,000. The online system will enable Northern Gas to eliminate 25 clerical positions. Smith estimates that the benefits of the new system's lower labor costs will have saved the company $1,360,000. Print Done