Rosemary Company imports lavender from its French subsidiary that are used in the production of lavender oil. Per pound, it costs the French subsidiary $10.00 to produce and $2.00 to ship to Rosemary Company. Rosemary Company uses the lavender oil for producing some fragrances and lotions that it sells to U.S. beauty stores for $30 per unit. The following tax rates apply: France income tax U.S. income tax U.S. import duty 33% 35% 10% of invoice price Required: 1. If the oil is sold to Rosemary Company at a price of $15 per unit, determine the total amount of: a) Net income. b) Taxes and duties paid to the U.S. and France governments. 2. If the oil is sold to Rosemary Company at a price of $20 per unit, determine the total amount of: a) Net income. b) Taxes and duties paid to the U.S. and France governments. 3. Explain why the results obtained in parts (1) and (2) differ