A Company Intends to Install New Management Software for Its

question 3

Multiple Choice

A company intends to install new management software for its warehouse. The software will cost $47,000 to buy and will cost an additional $148,000 to install and implement. It is anticipated that it will save the company $44,000 through reductions in staff and $69,000 in general inventory costs in the first year after installation. What is the total benefit to the company in the first year if they choose to install the software?

• A) $56,500
• B) $45,200
• C) $113,000
• D) $79,100

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Definitions:

Diagnose

The process of identifying and determining the nature of a problem, issue, or condition, often leading to a solution or management strategy.

Occupational Injury

Any cut, fracture, sprain, or amputation resulting from a workplace accident or from an exposure involving an accident in the work environment.

Sprain

An injury to a ligament caused by tearing or stretching, often occurring in joints such as the ankle or wrist.

Amputation

The surgical removal of a body part, often a limb; in the workplace, it can result from severe injuries typically involving machinery or accidents.