ACC312

Refer to the facts in problem 4. Compute the state income tax savings if Oldham could relocate its personnel so that payroll expense in State M increased to $1,900 (thousand) and payroll expense in State N decreased to $100 (thousand).

Problem 4 Table
	State M	State N	Total
Gross receipts from sales	$3,000	$7,500	$10,500
Payroll expense	$800	$1,200	$2,000
Property costs	$900	$1,000	$1,900