3. The chief information officer recommends that a new computer and software be purchased and installed at a cost of $100,000. This investment will decrease manpower costs by $4 per chair and shipping and handling by $2 per chair, which he says should result in an increase in profits of 10 percent. Will the purchase of the new computer and software result in increased profits, and if so, by how much?
Savings in costManpower costs : $4 per chairHandling costs : $2 per chairSavings in costs : $6 per chairSavings in costs is increase in profit.With purchase of computer equipment and software…
