As CEO of Ocean Side Marine, Dana Stuckey knows it is important to control costs and to
Question:
As CEO of Ocean Side Marine, Dana Stuckey knows it is important to control costs and to respond quickly to changes in the highly competitive boat-building industry. When ABCABC Consulting proposes that Ocean Side Marine invest in an ERP system, she forms a team to evaluate the proposal: the plant engineer, the plant foreman, the systems specialist, the human resources director, the marketing director, and the management accountant. A month later, management accountant Mark Cook reports that the team and ABCABC estimate that if Ocean Side Marine implements the ERP system, it will incur the following costs:
Costs of the Project
a.$420,000 in software costs
b.$90,000 to customize the ERP software and load OceanSide?'s data into the new ERP system
c.$112,000 for employee training
Requirement 1. If the ERP installation? succeeds, what is the dollar amount of the? benefits?
If the ERP installation succeeds, the dollar amount of the benefits is | $757,000 | . |
Requirement 2. Should
AquaBoat MarineAquaBoat Marine install the ERP? system? Why or why? not? Show your calculations.
Complete the table below to calculate the expected net benefits? (costs) of the project. ?(Use parentheses or a minus sign for net? costs.)
Expected benefits | |
Expected costs | |
Net benefits (costs) |