Hyundai is considering opening a plant in two neighboring states. Option 1:
One state has a corporate tax rate of 10 percent. If operated in this state, the plant is expected to generate $1,015,000 pretax profit.

Option 2:
The other state has a corporate tax rate of 2 percent. If operated in this state, the plant is expected to generate $960,000 of pretax profit.

a. What is the after state taxes profit in the state with the 10% tax rate?
Afeter state tax profit ?

b.
What is the after state taxes profit in the state with the 2% tax rate?

After state taxes profit ?

a. What is the after state taxes profit in the state with the 10% tax rate?

after state tax profit = $1,015,000 x (1 - state tax rate) = $1,015,000 x 0.90 = $913,500

b.  What is the after state taxes profit in the state with the 2% tax rate?

after state tax profit = $960,000 x (1 - state tax rate) = $960,000 x 0.98 = $940,800

Unlike federal corporate taxes which apply to all US corporations regardless of where they operate, state corporate taxes vary a lot depending on the state. Some states do not collect any tax at all (6 states) while others charge taxes that vary from 2.5% to 12%.

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)