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parentheses or a minus sign when entering a net cost.) Expected benefits Expected costs Net benefits (costs) 1,220,000 1,145,000 75,000 Because the benefits exceed the costs a cost-benefit analysis justifies proceeding with the online sy Requirement 3. Before Rodriguez makes a final decision, what other factors should she consider? --- Sun 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.) Rodriguez revises her estimates of the benefits from the new system's lower labor costs. She now thinks the savings will be only $930,000. Requirements 1. Compute the expected benefits of the online ordering system. 2. Would you recommend that Sun Gas accept the proposal? 3. Before Rodriguez makes a final decision, what other factors should she consider? Electronic order processing should increase human errors, and therefore increase costs. Electronic order processing should reduce human errors, and therefore decrease costs. Employee layoffs may hurt morale and efficiency, thus increasing costs. Providing dealers with current information could help Sun Gas increase its inventory levels. Providing dealers with current information could help Sun Gas reduce its inventory levels. The difficulty and cost of laying off employees may reduce the expected benefits

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