Question

Mid-West 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) Requirement Use a cost-benefit analysis to recommend to Bardeen whether Mid-West Gas should proceed with the online ordering system. Give your reasons, showing supporting calculations. (Use parentheses or a minus sign when entering a netcost.) Expected benefits Expected costs Net benefits (costs) Enter any number in the edit fields and then click Check Answer

Answer 1

Expected benefits	$1,410,000
Expected costs ($750,000+170,000+235,000)	(1,155,000)
Net benefits (costs)	$255,000

As per above results, Mid-west Gas should proceed with the online ordering system .