Border Supply Company is considering opening a plant in Vietnam, The company anticipates gross prafit of $3,500,000 from this new plant. It will cost $2,000,000 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. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much? O Benefits outweigh costs by $540,000. O Costs outweigh benefits by $540,000. O Benefits outweigh costs by $700,000. O Costs outweigh benefits by $700,000.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
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Border Supply Company is considering opening a plant in Vietnam, The company anticipates gross prafit of
$3,500,000 from this new plant. It will cost $2,000,000 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. Do the benefits outweigh the costs or
do the costs outweigh the benefits, and by how much?
O Benefits outweigh costs by $540,000.
O Costs outweigh benefits by $540,000.
O Benefits outweigh costs by $700,000.
O Costs outweigh benefits by $700,000.
Transcribed Image Text:Border Supply Company is considering opening a plant in Vietnam, The company anticipates gross prafit of $3,500,000 from this new plant. It will cost $2,000,000 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. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much? O Benefits outweigh costs by $540,000. O Costs outweigh benefits by $540,000. O Benefits outweigh costs by $700,000. O Costs outweigh benefits by $700,000.
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