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can you complete the income statement for me? Information: Shoo, a niche luxury American footwear brand, is interested in expanding its operations into Africa. It

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Information: Shoo, a niche luxury American footwear brand, is interested in expanding its operations into Africa. It has collected data that will assist in performing a scenario analysis In this exercise, you are part of the decision-making team. Shoo has to decide between setting up operations in South Africa, Zambia, or Cameroon Each of these countries has different tax rates and interest rates, as follows: Tax rate interest rate South Africa Zambia Cameroon 28% 35% 33% 8% 12% 3% Note: All prices are in US dollars. If Shoo sets up operations in South Africa, it will be able to sell 57,500 units in its first year at a selling price of US$899. It will cost US$615 to produce a unit, and Shoo would have to spend US$1,500,000 on marketing and advertising costs, and would have to take out a loan of US$12,500,000 If Shoo sets up operations in Zambia, it will be able to sell 53,750 units in its first year at a selling price of US$750. It will cost US$435 to produce a unit, and Shoo would have to spend US$1,250,000 on marketing and advertising costs, and would have to take out a loan of US$8,000,000 If Shoo sets up operations in Cameroon, it will be able to sell 88,000 units in its first year at a selling price of US$975. It will cost US$798 to produce a unit, and it would have to spend US$1,350,000 on marketing and advertising costs, and would have to take out a loan of US$8,500,000 You are required to perform a scenario analysis, before recommending which country Shoo should set up operations in Scenario 1 Scenario 2 Scenario 3 Zambia Cameroon South Africa Revenue Cost of goods sold Gross profit Gross profit margin Operating expenses 1,750,000 1,895,000 1,750,000 1,895,000 Staff costs General and administrative costs Marketing and advertising costs Depreciation 1,750,000 1,895,000 8,750,000 8,750,000 8,750,000 Operating profit (EBIT) EBIT margin Interest expense Profit/loss before tax Tax paid Profit/loss after tax Net margin Assumptions Units sold Selling price per unit Cost price per unit Marketing and advertising costs Loan amount Interest rate Tax rates Which country should Shoo set up operations in? Answer: Provide a justification for the country selected

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