Company EJ plans to build a new plant to manufacture bicycles. EJ sells its bicycles in the world market for $590 per bike. It could locate the plant in Province P, which levies a 25 percent tax on business income. On the basis of the cost of materials and labor in Province P, EJ estimates that its manufacturing cost per bike would be $364. Alternatively, EJ could locate the plant in Province W, which levies a 20 percent tax on business income. On the basis of the cost of materials and labor in Province W, EJ estimates that its manufacturing cost per bike would be $382.

1. Calculate the after-tax profit per bike for each province.
2. In which province should Company EJ build its new plant?

Required A Required B Calculate the after-tax profit per bike for each province. (Deductions should be indicated by a minus sign. Round your intermediate calculations and final answers to the nearest whole dollar amount.) Province P: Sale price per bike Manufacturing cost per bike Taxable income Tax After-tax profit per bike Province W: Sale price per bike Manufacturing cost per bike Taxable income Tax After-tax profit per bike $ 0