Torque Engine Company Is Considering Opening a Plant in China

question 107

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.

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Definitions:

Personalism

Behaviour that appears to be directly intended to benefit or harm oneself rather than others.

Causal Schemata

Experience-based beliefs about how certain types of causes interact to produce an effect.

Internal Cause

An explanation for behavior or events that attributes their origin to factors within the person, such as traits, feelings, or abilities.

Emotional Lability

The tendency to experience rapid and intense emotional changes or mood swings, with emotions that might not be proportionate to the situation.