McIntyre Industries manufactures iPhone case covers. Sarabeth Anderson, the CEO, is trying to decide whether to adopt a lean thinking model. She expects that adopting lean production would save $77,000 in warehousing expenses and $39,600 in spoilage costs. Adopting lean production will require several one-time up-front expenditures: S25,000 for an employee training program, S89,000 to streamline the plant's production process, and 37,000 to identify suppliers that wil guarantee zero defects and on-time delivery Read the requirements. 

Requirement

What are the total costs of adopting lean production?