Web based ordering system


Sun Gas want to move its sales order system to the Web. CFO Carrie Smith believes that dealers will nt adopt the nw web system unless SunGas provides financial assistance o upgrade their PCs. Smith estimates $750,000 as a one time cost. Sungas will have to invest $150,000 to update their own computersystems. The cost of the software and the the consulting fee for installing the system will be $230,000. The Web system will eliminate 25 clerical positions. Smith estimatesthat the lower labor costs will save the company $1,357,000. Use the cost benefit analysis to recommend to Smith whether Sun Gas should proceed wi the Web based ordering system. Give your reasons, showing supporting calculations.

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Business Management: Web based ordering system
Reference No:- TGS086967

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