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Question 1 rain Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipment for LLS_ consumers. The anufacturing subsidiary has total manufacturing costs
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rain Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipment for LLS_ consumers. The anufacturing subsidiary has total manufacturing costs of $1.530.000. plus general and administrative expenses of$3S3.OOO. The anufacturing unit sells the equipment for SZS30.OOO to the CIS. marketing subsidiary which sells it to the final consumer for an ggregate of S3.S30.OOO_ The sales subsidiary has total marketing. general. and administrative costs of $203,000. Assume that ingapore has a corporate tax rate of and that the LLS_ tax rate is 21%. Assume that no tax treaties or other special tax treatments qulred: hat is the effect on Crain Company's total corporate-level taxes if the manufacturing subsidiary raises its price to the sales subsidiary 20%? (Do not round Intermedlete calculations. Input II mounts s posltlve values.) is cmplete but not ct. P roft tar P roft tar 2.530 coo O 1.530.coc O 353.000 0 647. coo O 213.5100 432.400 3. D3e.coo O 1.530.coo O 353. coo O 1.153.coo O 380.400 0 772.510
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