Zen | |||
X | Y | Total | |
Selling Price | 332,000 | 470,000 | |
Cost | 170,000 | 332,000 | |
Profit | 162,000 | 138,000 | |
Tax Rate | 40% | 40% | |
Tax Liability | 64,800 | 55,200 | 120,000 |
After raising price | |||
X | Y | Total | |
Selling Price | 398,400 | 470,000 | |
Cost | 170,000 | 398,400 | |
Profit | 228,400 | 71,600 | |
Tax Rate | 40% | 40% | |
Tax Liability | 91,360 | 28,640 | 120,000 |
No effect as tax rates are same | |||
2. | |||
Original | |||
X | Y | Total | |
Selling Price | 332,000 | 470,000 | |
Cost | 170,000 | 332,000 | |
Profit | 162,000 | 138,000 | |
Tax Rate | 20% | 40% | |
Tax Liability | 32,400 | 55,200 | 87,600 |
After raising price | |||
X | Y | Total | |
Selling Price | 398,400 | 470,000 | |
Cost | 170,000 | 398,400 | |
Profit | 228,400 | 71,600 | |
Tax Rate | 20% | 40% | |
Tax Liability | 45,680 | 28,640 | 74,320 |
Decrease in tax liability by 13,280 |
and 19 Homework (Managerial) Saved Zen Manufacturing Inc. is a multinational firm with sales and manufacturing...
Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One of its manufacturing units, in country X, sells its product to a retail unit in country Y for $340,000. The unit in country X has manufacturing costs of $175,000 for these products. The retail unit in country Y sells the product to final customers for $475,000. Zen is considering adjusting its transfer prices to reduce overall corporate tax liability. Required: 1. Assume that both...
Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One of its manufacturing units, in country X, sells its product to a retail unit in country Y for $320,000. The unit in country X has manufacturing costs of $162,500 for these products. The retail unit in country Y sells the product to final customers for $462,500. Zen is considering adjusting its transfer prices to reduce overall corporate tax liability. Required: 1. Assume that both...
e Chapter 17 and 19 Homew... X Tools Help a AFCC WEBSITE Property management se e Suggested Sites - WebSlice Gallery 17 and 19 Homework (Managerian Saved Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One of its manufacturing units, in country X, sells its product to a retail unit in country Y for $332,000. The unit in country X has manufacturing costs of $170,000 for these products. The retail unit in country...
Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One of its manufacturing units, in country X, sells its product to a retail unit in country Y for $352,000. The unit in country X has manufacturing costs of $182,500 for these products. The retail unit in country Y sells the product to final customers for $482,500. Zen is considering adjusting its transfer prices to reduce overall corporate tax liability. Required: 1. Assume that both...
Crain Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipment for U.S. consumers. The manufacturing subsidiary has total manufacturing costs of $1,550,000, plus general and administrative expenses of $355,000. The manufacturing unit sells the equipment for $2,550,000 to the U.S. marketing subsidiary, which sells it to the final consumer for an aggregate of $3,550,000. The sales subsidiary has total marketing, general, and administrative costs of $205,000. Assume that Singapore has a corporate tax rate of 33% and...
Crain Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipment for U.S consumers. The manufacturing subsidiary has total manufacturing costs of $1,460,000, plus general and administrative expenses of $346,000. The manufacturing unit sells the equipment for $2,460,000 to the U.S. marketing subsidiary, which sells it to the final consumer for an aggregate of $3,460,000. The sales subsidiary has total marketing. general, and administrative costs of $196,000. Assume that Singapore has a corporate tax rate of 33 %...
Crain Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipment for U.S. consumers. The manufacturing subsidiary has total manufacturing costs of $1,540,000, plus general and administrative expenses of $354,000. The manufacturing unit sells the equipment for $2,540,000 to the U.S. marketing subsidiary, which sells it to the final consumer for an aggregate of $3,540,000. The sales subsidiary has total marketing, general, and administrative costs of $204,000. Assume that Singapore has a corporate tax rate of 33% and...
Plush Decor, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Singapore, Brazil, and Spain. All area rugs are to be sold to retail outlets in the United States for $290 per unit. These retail outlets add their own markup when selling to final customers. Fixed costs and variable cost per unit (area rug) differ in the three countries. E: (Click the icon to view the cost data.) Read the requirements. Requirement 1....
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...
Please help me answer theses practice questions QUESTION 2 Which of the following can a country implement to protect local industries (e.g. bicycles) according to the video on the deceptive promise of free trade? Border walls local training programs to strengthen local industries protectionist policies such as tarrifs creating a high minimum wage locally governments can't do anything QUESTION 3 Which of the following European countries has a trade surpluse with the US as well as most other European countries...