Question

Country Western Clothing Outfitters is considering investing in an inventory tracking system. It will have $ 10 comma 800 in software costs and $ 8 comma 700 in employee training costs. Computer hardware also needs to be upgraded for the​ system; the hardware upgrades are expected to be $ 12 comma 300. The expected benefits from the inventory tracking system should be $ 28 comma 100. Do the benefits outweigh the costs or do the costs outweigh the​ benefits, and by how​ much?

Answer 1

The cost outweigh the benifits by 3,700 dollars.

Step-by-step explanation:

The benifits outweigh the cost if total benifits are more than total costs/spendings. Detail calculation to check the requirement of question is given below.

Spending

Software Cost $ 10,800

Employee Training $ 8,700

Hardware upgradation cost $ 12,300

Total spending $ 31,800 -A

Benifits

Inventory tracking system $ 28,100

Total Benifits $ 28,100 -B

Saving B-A ($ 3,700)