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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 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.) Rodriguez revises her estimates of the benefits from the new system's lower labor costs. She now thinks the savings will be only $925,000 Requirements 1. Compute the expected benefits of the online ordering system. 2. Would you recommend that Sun Gas accept the proposal? 3. Before Rodriguez makes a final decision, what other factors should she consider? Requirement 1. Compute the expected benefits of the online ordering system. The expected benefits of the online ordering system are Requirement 2. Would you recommend that Sun Gas accept the proposal? Complete the cost-benefit analysis below to compute the expected net benefits (costs) of the project. (Useparentheses or a minus sign when entering a net cost.) Expected benefits Expected costs Net benefits (costs) Cost information CFO Susan Rodriguez believes that dealers will not adopt the new online system unless Sun Gas provides financial assistance to help them purchase or upgrade their computer systems. Rodriguez estimates this one-time cost at $745,000. Sun 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 Sun Gas to eliminate 25 clerical positions. Rodriguez estimates that the benefits of the new system's lower labor costs will have saved the company $1,210,000. Print Done Expected coSIS Net benefits (costs) Because the a cost-benefit analysis CID proceeding with the online system. Requirement 3. Before Rodriguez makes a final decision, what other factors should she consider? Time Re
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