Torque Engine Company is considering opening a plant in China. It will cost $3,500,000 to set up the plant and $800,000 to train employees. An additional $160,000 will be spent to build relationships with the local suppliers. The company anticipates gross profit of $4,500,000 from this new plant. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?
A)Costs outweigh benefits by $200,000.
B)Benefits outweigh costs by $200,000.
C)Costs outweigh benefits by $40,000.
D)Benefits outweigh costs by $40,000.

Question

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The Answer of Torque Engine Company is considering opening a plant in China. It will cost $3,500,000 to set up the plant and $800,000 to train employees. An additional $160,000 will be spent to build relationships with the local suppliers. The company anticipates gross profit of $4,500,000 from this new plant. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?
A)Costs outweigh benefits by $200,000.
B)Benefits outweigh costs by $200,000.
C)Costs outweigh benefits by $40,000.
D)Benefits outweigh costs by $40,000.

Torque Engine Company Is Considering Opening a Plant in China