Target Manufacturing, Inc., is a multinational firm with sales and manufacturing units in 15 countries. One of
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1. Assume that both country X and country Y have corporate income tax rates of 40 percent and that no special tax treaties or benefits apply to Target. What would be the effect on Target's total tax burden if the manufacturing unit raises its price from $200,000 to $240,000?
2. What would be the effect on Target's total taxes if the manufacturing unit raised its price from $200,000 to $240,000 and the tax rate in country X is 20 percent and in country Y is 40 percent?
3. Comment on the ethical issues you observe, if any, in this case.
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Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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