Torque Engine Company Is Considering Opening a Plant in China

Multiple Choice

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 the benefits,and by how much?

A) Costs outweigh benefits by $150,000.
B) Benefits outweigh costs by $150,000.
C) Costs outweigh benefits by $50,000.
D) Benefits outweigh costs by $50,000.