Origami does business in states X and Y. State X uses an equally-weighted three-factor apportionment formula and has a 4 percent state tax rate. State Y uses an apportionment formula that double-weights the sales factor and has a 6 percent tax rate. Origami's taxable income, before apportionment, is $3 million. Its sales, payroll, and property information are as follows.

		X			Y			Total
Gross receipts/sales	$	575,000		$	100,000		$	675,000
Payroll		140,000			60,000			200,000
Property		600,000			150,000			750,000

a. Calculate Origami's apportionment factors, income apportioned to each state, and state tax liability.

b. State Y is considering changing its apportionment formula to a single sales factor. Given its current level of activity, would such a change increase or decrease Origami's state income tax burden? Provide calculations to support your conclusion.