The selling price is Rs. 15000 per unit; Variable cost per unit is Rs. 10000; Number of units sold is 3000; Fixed cost is Rs. 50 lakhs. Assume Tax rate in India is 40% and Tax Haven 0%.
A. What are income tax and disposable income if all units are sold in India?
B. What are income tax and disposable income if 950 units are sold through shell companies (Tax Heaven) in India?

Answer rating: 100% (QA)

a Given Number of units produced and sold 3000 Selling price per unit Rs 15000 Variable cost per uni... View the full answer