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Changing the pricing system, ABC US marks up the widgets leaving the US for Cayman by 35%, and Cayman applies a mark-up of 35%. From

  1. Changing the pricing system, ABC US marks up the widgets leaving the US for Cayman by 35%, and Cayman applies a mark-up of 35%. From the profit ABC US generates, it must pay 20% in taxes.
    1. What does ABC Cayman pay for the shipment? In USD and in KYD?

  1. What is the duty in KYD?
  2. How much profit does ABC US make on this transaction?
  3. What is the retail price charged for each widget? (in USD and KYD)
  4. What is the tax (including duty) paid as a percentage of total sales?

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