Question

E3-37 (similar to) Question Help Bargairmart is an international retail store. Bargaimart's managers are considering implementing a new business-to-business (B28) information system for processing merchandise orders. The current system cous Bargarmart $1,000,000 per month and 145 per order. Bagaimarthas two options, a partially automated 026 and a My tomated 020 wystem. The partially automated B20 wystem will have a fixed cost of 6,000,000 per month and a variable cost of $30 per order. The fly automated B28 stem has a filed cost of $13,200,000 per month and $20 per order. Based on data from the past two years, Bargaimarthas determined the folowing darbution on money orders (Click the loon to view the data) Read the requirements Requirements 1 & 2. Prepare a table showing the cost of each plan for each quality of money orders. What is the expected cost of each plan? Determine the monthly cost of each onder level under the current plan and then compute the expected cost Current plan Total monthly cost Total expected Order level of orders Probability cost of orders 250,000 orders 450,000 orders 650,000 orders Total expected cost of plan

Answer 1