How does an organization determine what web based applications would
be appropriate for their business to offer over the Internet based on
a comparison of their different costs?

"appropriate for their business to offer over the Internet based on
a comparison of their different costs?"

Firstly, that assumes they know what their costs are?  Only about 1%
of all companies even have a clue to what their cost struct really is.
 It requires alot of work using Activity Based Costing.
http://www.pitt.edu/~roztocki/abc/abctutor/

Most companies price discriminate through difference chanels. Due to
the fact that  the web will be one of the smallest chanels, it will
get the worst pricings.

80/20 rule says that most of your revenue comes from a small number of clients.

Web users will purchase 1 or 2 at at a time where wholesales may
purchase a million at a time.