Edwards Restaurant Supplies Is Investigating the Possibility of Adopting a Lean

Multiple Choice

Edwards Restaurant Supplies is investigating the possibility of adopting a lean production philosophy throughout their organization.Estimated costs to set up the computer system are $650,000; training employees in lean production is estimated to cost $175,000; and the general expenses of establishing the program are estimated at $35,000.The estimated value of the potential savings is $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 $115,000 .
D) Benefits outweigh costs by $115,000.