Haliday Company has manufacturing subsidiaries in Thailand and Mexico. It is considering ship-ping the subcomponents of Product X to one or the other of these countries for final assembly. The final product will be sold in the country where it is assembled. Other information is as follows:

In both countries, the import duties are based on the value of the incoming goods in the receiving country’s currency.

a. For each country, prepare an income statement on a per-unit basis denominated in that country’s currency.
b. In which country would the highest profit per unit (in dollars) be earned?
c. In which country would the highest total profit (in dollars) beearned?

  • CreatedApril 17, 2014
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