Johnson Scooter Company Is Considering Whether or Not to Expand

question 150

Essay

Johnson Scooter Company is considering whether or not to expand into a new area of the US. They produce high-performance gas scooters with moderate gas mileage, but have developed a new battery technology that combines a small amount of electrical energy with the existing gas power. This new technology will significantly increase the fuel economy of their bikes. They will need to spend $5,075,000 to retrofit a building to incorporate the new fuel-saving technology. New worker training will cost $1,984,000. Other expenses involved in getting the new plant up and running amount to $332,000. The CEO anticipates that, with gas price increases, the profit potential of this expansion is $7,588,000. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?

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Definitions:

Acute Glomerulonephritis

Rapid onset inflammation of the glomeruli, which are small structures in the kidneys that filter blood.

Urinalysis

A test of urine to detect and manage a wide range of disorders, such as urinary tract infections, kidney disease, and diabetes.

Refrigerated

Maintained or kept cool in a fridge to preserve freshness, prevent spoilage, or slow down chemical reactions.

Voided

Refers to the excretion of urine from the bladder.