K Star Gas wants to move its sales order system online. Under the proposed system, gas...

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K Star 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 Abbott whether Star Gas should proceed with the online ordering system. Give your reasons, showing supporting calculations. (Use parentheses or a minus sign when entering a net cost.) Expected benefits Expected costs Net benefits (costs) Recommend to Abbott whether Star Gas should proceed with the online ordering system. Since the expected value of the benefits Cost Information the total costs, Star proceed with the online system. CFO Kate Abbott believes that dealers will not adopt the new online system unless Star Gas provides financial assistance to help them purchase or upgrade their computer network. Abbott estimates this one-time cost at $745,000. Star Gas will also have to invest $165,000 in upgrading its own computer hardware. The cost of the software and the consulting fee for installing the system will be $215,000. The online system will enable Star Gas to eliminate 25 clerical positions. Abbott estimates that the benefits of the new system's lower labor costs will have saved the company $1,370,000. - K Star 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 Abbott whether Star Gas should proceed with the online ordering system. Give your reasons, showing supporting calculations. (Use parentheses or a minus sign when entering a net cost.) Expected benefits Expected costs Net benefits (costs) Recommend to Abbott whether Star Gas should proceed with the online ordering system. Since the expected value of the benefits Cost Information the total costs, Star proceed with the online system. CFO Kate Abbott believes that dealers will not adopt the new online system unless Star Gas provides financial assistance to help them purchase or upgrade their computer network. Abbott estimates this one-time cost at $745,000. Star Gas will also have to invest $165,000 in upgrading its own computer hardware. The cost of the software and the consulting fee for installing the system will be $215,000. The online system will enable Star Gas to eliminate 25 clerical positions. Abbott estimates that the benefits of the new system's lower labor costs will have saved the company $1,370,000. -