Question: 1. 2. 3. 4. 5. 6. 7. 8. Eagle Rider Motorcycles is considering whether to expamd into Germany. If gas prices increase, the compay expects

1.  1. 2. 3. 4. 5. 6. 7. 8. Eagle Rider Motorcycles
2. is considering whether to expamd into Germany. If gas prices increase, the
3. compay expects more interest in fuel-efficient transportation such as motorcycles. As a
4. result, the company is considering setting up a motorcycle assembly plant on
5. the outskirts of Berlin. EagleRider Motorcycles estimates it will cost $920,000 to
6. an existing building to motorcycle production. Workers will need training, at a
7. total cost of $60,000. The additional costs to organize the business and
8. to establish relationships is estimated to be $ 140,000. The CEO believes
Eagle Rider Motorcycles is considering whether to expamd into Germany. If gas prices increase, the compay expects more interest in fuel-efficient transportation such as motorcycles. As a result, the company is considering setting up a motorcycle assembly plant on the outskirts of Berlin.
EagleRider Motorcycles estimates it will cost $920,000 to an existing building to motorcycle production. Workers will need training, at a total cost of $60,000. The additional costs to organize the business and to establish relationships is estimated to be $ 140,000.
The CEO believes the company can earn profits from this expansion (before considering the costs in the preceding paragraph) of 1,692,000.
Requirement:
Use cost-benefit analysis to determine whether EagleRider should expand into Germany.

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