Consider the West Coast Gas proposed entry into ecommerce in P1-36B. Ma revises her estimates of the

Question:

Consider the West Coast Gas proposed entry into ecommerce in P1-36B. Ma revises her estimates of the benefits from the new system’s lower labour costs. Ma now thinks the saving will be only $925,000.

Requirements

1. Compute the expected benefits of the web-based ordering system.

2. Would you recommend that West Coast Gas accept the proposal?

3. Before Ma makes a final decision, what other factors should be considered?

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Managerial Accounting

ISBN: 978-0176223311

1st Canadian Edition

Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp

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Question Posted: Apr 30, 2015 10:28 AM

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Consider the West Coast Gas proposed entry into ecommerce in P1-36B. Ma revises her estimates of the

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Req 1 The expected value of the benefits is the labour cost savings of 925000 This is a downward rev...View the full answer

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