Business, 08.10.2019 05:00 ella8586

Company ej plans to build a new plant to manufacture bicycles. ej sells its bicycles in the world market for $410 per bike. it could locate the plant in province p, which levies a 25 percent tax on business income. on the basis of the cost of materials and labor in province p, ej estimates that its manufacturing cost per bike would be $220. alternatively, ej could locate the plant in province w, which levies a 20 percent tax on business income. on the basis of the cost of materials and labor in province w, ej estimates that its manufacturing cost per bike would be $238. calculate the after-tax profit per bike for each province. in which province should company ej build its new plant

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Company ej plans to build a new plant to manufacture bicycles. ej sells its bicycles in the world ma...