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Chapter 05_Willowbrook_Solution

Chapter 05_Willowbrook_Solution - Willowbrook School 1...

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Willowbrook School 1. Provide an overview of the proposed system, including costs and benefits, with an explanation of the various cost-and-benefit types and categories. Cost or Benefit Financial Impact Description of Cost or Benefit Eliminate 30 hours of overtime each month at $8.50 per hour Annual savings of 30 hours * $12 hourly rate * 12 months = $4,320 Direct, operational, variable, positive benefit Eliminate need for additional 40 hours per month in next school year Avoidance of annual cost of 40 hours * $12 hourly rate * 12 months = $5,760 Direct, operational, variable, cost-avoidance benefit Eliminate monthly errors Potential annual savings of 10 hr/month = 10 * $12 hourly rate * 12 months = $1,440 Direct, operational, variable, positive benefit For in-house option: consultant’s time to develop system $50 hourly rate * 25 hours * 8 weeks = $10,000 Direct, developmental, fixed cost For in-house option: Networked commercial database software for in- house development $2,000 Direct, developmental, fixed cost For package option: vertical software package from vendor $2,500 in year 0, followed by 2 annual payments of $2,500, for a total of $7,500 Direct, developmental, fixed cost For package option: consultant's time to install, configure, and test vendor package $50 hourly rate * 40 hours * 3 weeks = $6,000 Direct, developmental, fixed cost For package option: vendor tech support contract Annual cost of $1000 after first year of operation
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