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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 costs. She now thinks the savings will be only $936,000. availability and current price of various products and place an order. Currently. Jensen revises her estimates of the benefits from the new system's lower laba customer service representatives take dealers' orders over the phone; the Requirements the information on a paper form, then manually enter it into the firm's computer system. 1. Compute the expected benefits of the online ordering system 2. Would you recommend that Sun Gas accept the proposal? 3. Before Jensen makes a final decision, what other factors should she consid Weuld yea secomamken a ina desion,had other (Click the icon to view additional information.) Requirement 1. Compute the expected benefits of the online ordering system. The expected benefits of the online ordering system are i Cost Information CFO Karen Jensen 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. Jensen estimates this one-time cost at $755,000. Sun Gas will also have to invest $175,000 in upgrading its own computer hardware. The cost of the software and the consulting fee for in $235,000. The online system will enable Sun Gas to eliminate 25 clerical positions. Jensen estimates that the benefits of the new system's lower labor costs will have saved the company stalling the system will be will have saved the company $1,450,000 Print Done
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