Please help, show the steps. I'm trying to understand the most I can Cost Accounting Principles

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Please help, show the steps. I'm trying to understand the
most I can
Cost Accounting Principles

Please Help Show The Steps I M Trying To Understand The Most I Can Cost Accounting Principles 1 (48.99 KiB) Viewed 47 times

Kindmart is an international retail store. Kindmart's managers are considering implementing a new business-to-business (B2B) information system for processing merchandise orders. The current system costs Kindmart $2,000,000 per month and $55 per order. Kindmart has two options, a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of $6,000,000 per month and a variable cost of $45 per order. The fully automated B2B system has a fixed cost of $14,000,000 per month and $25 per order. Based on data from the past two years, Kindmart has determined the following distribution on monthly orders:
Data table Probability 0.25 Monthly Number of Orders 300,000 orders 500,000 orders 700,000 orders 0.45 0.30
Requirements 1. Prepare a table showing the cost of each plan for each quantity of monthly orders. 2. What is the expected cost of each plan? 3. In addition to the information systems costs, what other factors should Kindmart consider before deciding to implement a new B2B system?
Requirements 1 & 2. Prepare a table showing the cost of each plan for each quantity of monthly orders. What is the expected cost of each plan?
Determine the monthly cost of each order level under the current plan and then compute the expected cost. Current plan
Order level Total monthly cost of orders Probability Total expected cost of orders = 300,000 orders
500,000 orders X 11 700,000 orders X II
700,000 orders X II Total expected cost of plan