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Please Highlight the answers I need to put in the cells and follow the format plsssss and thank you~ > 1 Zen Manufacturing Inc. is
Please Highlight the answers I need to put in the cells and follow the format plsssss and thank you~ >
1 Zen Manufacturing Inc. is a multinational firm with sales and manufacturing units in 15 countries. One of its manufacturing units, in country X, sells its product to a retail unit in country Y for $372,000. The unit in country X has manufacturing costs of $195,000 for these products. The retail unit in country Y sells the product to final customers for $495,000. Zen is considering adjusting its transfer prices to reduce overall corporate tax liability. 10 points Required: 1. Assume that both country X and country Y have corporate income tax rates of 40% and that no special tax treaties or benefits apply to Zen. What would be the effect on Zen's total tax burden if the manufacturing unit raises its price from $372,000 to $446,400? 2. What would be the effect on Zen's total taxes if the manufacturing unit raised its price from $372,000 to $446,400 and the tax rates in countries X and Y are 20% and 40%, respectively? (For all requirements, leave no cell blank; if there is no effect enter "O" and select "No effect" from dropdown.) 1 Effect on Zen's total tax when tax rates are same in both the countries Effect on Zen's total tax when tax rates are different in countries X and Y 2
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