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# This post addresses benefits of keeping a plant open.

Rosenblatt Enterprises used decision tree analysis and cost-benefit analysis in their decision to keep open their current plant. The quantitative costs of keeping the plant open were \$5,000,000, while the quantitative benefits of keeping the plant open were only \$3,000,000. Rosenblatt decides to keep the plant open. The decision to keep the plant open is appropriate if:

a Additional qualitative benefits exceed \$2,000,000
b The relevant costs less the benefits of closing the plant were greater than \$2,000,000
c It would never be appropriate
d Both A & B

#### Solution Preview

B wouldn't make sense. The quant. costs are 5,000,000 and the benefits are 3,000,000. If we consider B, we would ...

#### Solution Summary

This solution provides the correct answer and explanation to the following question:

Rosenblatt Enterprises used decision tree analysis and cost-benefit analysis in their decision to keep open their current plant. The quantitative costs of keeping the plant open were \$5,000,000, while the quantitative benefits of keeping the plant open were only \$3,000,000. Rosenblatt decides to keep the plant open. The decision to keep the plant open is appropriate if:

a Additional qualitative benefits exceed \$2,000,000
b The relevant costs less the benefits of closing the plant were greater than \$2,000,000
c It would never be appropriate
d Both A & B

\$2.19