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Sun Gas want to move its sales order system to the Web. CFO Carrie Smith trusts that dealers will not adopt the now web system unless SunGas delivers financial assistance of upgrade their PCs. Smith estimates $750,000 as a onetime cost. Sungas will have to invest $150,000 to update their own computer systems. The cost of the software and the consulting fee for installing the system will be $230,000. The Web system will eliminate 25 clerical positions. Smith estimates that the lower labour costs will save the company $1,357,000. Use the cost benefit examination to recommend to Smith whether Sun Gas must proceed with the Web based ordering system. Give your reasons presentation supporting calculations.
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