ACCT 321 Second Semester 2020 Case Study 2 Rosemary Company imports lavender from its French subsidiary that are used in the production of lavender oil. Per pound, it costs the French subsidiary S10.00 to produce and $2.00 to ship to Rosemary Company. Rosemary Company uses the lavender oil for producing some fragrances and lotions that it sells to U.S. beauty stores for $30 per unit. The following tax rates apply France income tax U.S. income tax U.S. import duty 33% 35% 10% of invoice price Required: 1. If the oil is sold to Rosemary Company at a price of $15 per unit, determine the total amount of a) Net income. b) Taxes and duties paid to the U.S. and France governments. 2. If the oil is sold to Rosemary Company at a price of $20 per unit, determine the total amount of: a) Net income. b) Taxes and duties paid to the U.S. and France governments. 3. Explain why the results obtained in parts (1) and (2) differ