Continuation of P1-25A: Revised estimates (Learning Objective 5) A new labor law is going to be…

Continuation of P1-25A: Revised estimates (Learning Objective 5) A new labor law is going to be passed in Vietnam, and after some consideration, Andrew decides to revise his estimate of the labor costs savings as calculated in P1-25A. The new figure is now $695,000. In addition, there’s going to be an increase in training costs as well, with a new total of $251,000. There is no change in the expected logistics expense savings. Requirement In light of the revised estimates, recommend whether Fortune Garment should still relocate part of its production facilities from China to Vietnam.