Uncertainty and expected costs. Dawmart Corp, an international retail giant, is considering implementing a new business to business (B2B) information system for processing purchase orders. The current stem costs Dawmart $1,000,000 per month and $40 per order Dawmart has two options, a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of $5,000,000 per month and a variable cost of $30 per order. The fully automated B2B system has a fixed cost $10,000,000 per month and $20 per order Based on data from the last two years, Dawmart has determined the following distribution on monthly orders:

1. Prepare a table showing the cost of each plan for each quantity of monthly orders.

2. What is the expected cost of each plan?

3. In addition to the information systems costs, what other factors should Dawmart consider before deciding to implement a new B2B system?

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Monthly Number of Orders Probability 300,000 400,000 25 500,000 4. 600,000 .15 700,000