EZ-Rider Motorcycles is considering whether to expand into Germany. If gas prices increase, the company 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.

EZ-Rider Motorcycles estimates that it will cost \($850,000\) to convert an existing building to motorcycle production. Workers will need training, at a total cost of \($65,000\). The additional cost to organize the business and to establish relationships is estimated to be \($150,000\).

The CEO believes the company can earn profits from this expansion (before considering the costs in the preceding paragraph) of \($1,624,000\).

Requirement:-

Use cost-benefit analysis to determine whether EZ-Rider should expand into Germany.