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Crain Company has a manufacturing subsidiary in Singapore that produces high - end exercise equipment for U . S . consumers. The manufacturing subsidiary has
Crain Company has a manufacturing subsidiary in Singapore that produces highend exercise equipment for US consumers. The manufacturing subsidiary has total manufacturing costs of $ plus general and administrative expenses of $ The manufacturing unit sells the equipment for $ to the US marketing subsidiary, which sells it to the final consumer for an aggregate of $ The sales subsidiary has total marketing, general, and administrative costs of $ Assume that Singapore has a corporate tax rate of and that the US tax rate is Assume that no tax treaties or other special tax treatments apply.
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What is the effect on Crain Companys total corporatelevel taxes if the manufacturing subsidiary raises its price to the sales subsidiary by
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