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(a) Calculate the disposable income when all the 2500 units are sold in India. The Selling price and variable cost of the product are Rs.

(a) Calculate the disposable income when all the 2500 units are sold in India. The Selling price and variable cost of the product are Rs. 4000 and Rs. 1500 per unit, respectively. The fixed cost is Rs. 6 lakhs, and the tax rate in India is 25%. (b) Using the above data, if 875 units are sold through a shell company (Tax Haven 0%) in India, what would be the income tax payable and disposable income if the price quote to the shell company is Rs. 2200 per unit? The Selling price, variable cost, and fixed costs of the product remain the same as in the previous question. Calculate Income tax and disposable Income.

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