Pete's Cola Company Is Investigating the Possibility of Adopting a Lean

Multiple Choice

Pete's Cola Company is investigating the possibility of adopting a lean thinking philosophy throughout their organization.Estimated costs to set up the computer system are $1,650,000;training employees in lean operations is estimated to cost $175,000;and the general expenses of establishing the program are estimated at $315,000.The estimated value of the potential savings is $1,975,000.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 $165,000.
D) Benefits outweigh costs by $165,000.