Ask Question
7 September, 10:29

Torque Engine Company is considering opening a plant in China. It will cost $3,500,000 to set up the plant and $750,000 to train employees. An additional $100,000 will be spent to build relationships with the local suppliers. The company anticipates gross profit of $4,400,000 from this new plant. Do the benefits outweigh the costs or do the costs outweigh thebenefits, and by how much?

+4
Answers (1)
  1. 7 September, 10:38
    0
    Answer: Benefits outweigh the costs by $50,000.

    Explanation:

    Given that,

    Plant set up cost = $3,500,000

    Cost to train employees = $750,000

    Cost to build relationships = $100,000

    Gross profit from plant (Benefits) = $4,400,000

    Total costs = Plant set up cost + Cost to train employees + Cost to build relationships

    = $3,500,000 + $750,000 + $100,000

    = $4,350,000

    Difference = Total benefits - Total costs

    = $4,400,000 - $4,350,000

    = $50,000

    Therefore, benefits outweigh the costs by $50,000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Torque Engine Company is considering opening a plant in China. It will cost $3,500,000 to set up the plant and $750,000 to train employees. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers