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KTR Company ears a $30 profit on each unit of manufactured goods, and it sells 60 million units each year KTR's income tax rate is

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KTR Company ears a $30 profit on each unit of manufactured goods, and it sells 60 million units each year KTR's income tax rate is 20 percent. However, the jurisdiction in which KTR operates just increased the tax rate to 25 percent for next year KTR's owners are considering two alternatives. They could simply accept the $90.0 million tax increase as a reduction in their after-tax profit, or they could raise the price of each unit by 1.5 dollars, thereby increasing the profit per unit to $31.50. However, the marketing department estimates that the price increase could reduce annual sales to 570 million units. a. Calculate the taxable income, income tax costs, and after tax profit for each alternatives. b. Which alternative is better for KTR's owners? Answer is complete but not entirely correct. Complete this position by entering your answers in the tabs below. RA Required B Calculate the c inco anos de las pro for each lever your answers in d i dollars) Alternative 1 Alternative 2 $ Taxable income Income tax costs 1.000 000 000 (450,000,000) 1.350.000 000 $ 179,500,000 S (448,875.000) $ 114 625 000 $ Required B >

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