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

question 52

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.

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Definitions:

Healthy

Being Healthy refers to a state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Companionate Love

A deep and durable form of love that is characterized by mutual respect, attachment, affection, and trust, often found in long-term relationships.

Reciprocity Norm

is a social norm that prescribes individuals to respond to others with similar kinds of actions they have received, facilitating cooperation and social exchange.

Altruism

Unselfish regard for the welfare of others.