A European car company is trying to decide if they should manufacture their vehicles for the US market in Europe, or in the United States. Please do the calculations that will help this company come to a decision. Sale price of vehicle in the United States - $36,000 Cost to manufacture the car in Europe – 20,000 Euros Cost to import the vehicle into the United States – $4,500 Cost to manufacture the vehicles in the United States - $28,500 10. (3 POINTS) Suppose the exchange rate is near 1 Euro = $1.30. What would be the profit for the European car company (in Euros) if they manufactured their car in Europe? Remember, they have to pay the import tax.

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