Question

core: 0 of 1 pt 2 of4 1-28A (similar to) Sun Gas wants to move its sales order system online. Under the proposed ystem, gas stations and other merchants will use a secure site to check he availability and current price of various products and place an order Currently, customer service representatives take dealers' orders over the hone; they record the information on a paper form, then manually enter it nto the firm's computer system

Answer 1

Answer

Cost Benefit Analysis showing whether Sun Gas should proceed with the online ordering system

Expected Benefits = $14,30,000 (Saving in Labur Cost)

Expected Costs = $7,65,000+ $1,45,000+$2,30,000 = $11,40,000

Net Benefits = $14,30,000 - $11,40,000 = $2,90,000

We can see that the net benefits is $2,90,000. Hence, Sun Gas should proceed with the online ordering system