subject
Business, 17.12.2019 23:31 fhemmie963

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 $356,000. the unit in country x has manufacturing costs of $185,000 for these products. the retail unit in country y sells the product to final customers for $485,000. zen is considering adjusting its transfer prices to reduce overall corporate tax liability.
required:
1. assume that both country x and country y have corporate income tax rates of 40% and that no special tax treaties or benefits apply to zen. what would be the effect on zen’s total tax burden if the manufacturing unit raises its price from $356,000 to $427,200?
2. what would be the effect on zen’s total taxes if the manufacturing unit raised its price from $356,000 to $427,200 and the tax rates in countries x and y are 20% and 40%, respectively?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 23:30
Afinancial institution, the thriftem bank, is in the process of formulating its loan policy for the next quarter. a total of $12 million is allocated for that purpose. being a full-service facility, the bank is obligated to grant loans to different clientele. the following table provides the types of loans, the interest rate charged by the bank, and the possibility of bad debt as estimated from past experience.type of loaninterest rateprobability of bad debtpersonal.140.10car.130.07home.120.03farm.125.05commercial.100.02 bad debts are assumed unrecoverable and hence produce no interest revenue either. competition with other financial institutions in the area requires that the bank allocate at least 40% of the total funds to farm and commercial loans. to assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. the bank also has a stated policy specifying that the overall ratio for bad debts on all loans may not exceed .04. formulate this problem as a linear program. define your variables clearly and write all the constraints explaining the significance of each.
Answers: 1
question
Business, 22.06.2019 11:00
Alocal barnes and noble bookstore ordered 80 marketing books but received 60 books. what percent of the order was missing?
Answers: 1
question
Business, 22.06.2019 19:10
Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position
Answers: 3
question
Business, 22.06.2019 21:00
Adecision is made at the margin when each alternative considers
Answers: 3
You know the right answer?
Zen manufacturing inc. is a multinational firm with sales and manufacturing units in 15 countries. o...
Questions
question
Biology, 19.09.2019 06:20