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Sun Gas wants to move its sales order system online. Under the proposed system, gas stations and other merchants will use a secure site to
Sun 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 availablity and current price of various products and place an order. Currently, customer service representatives take dealers' orders over the phone; they recond the information on a paper form, then manually enter is into the firm's computer system Click the icon to view additional information) Requirement Use a cost bereft analysis to recommend to Smith whether Sun Gas should proceed with the wondering system. Give your reasons, showing supporting calculato (Use parentheses or a minus sign when entering a net cost) Expected benefits Expected costs Not benefits (costs) Cost information CFO Maria Smith believes that dealers will not adopt the new online system unless Sun Gas provides financial assistance to help them purchase or upgrade their computer network Smith estimates this one time cost at $750,000 Sun Gas will also have to invest $145,000 in upgrading its own computer hardware. Thest of the software and the consulting foe for instating the system wil be $215,000. The online system will enable Sun Gas to eliminate 25 clerical positions Smith estimates that the benefits of the new system's lower labor costs will have saved the company $1,430,000 Print Done
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