Question
The American Company has 3 factories. Information as follows: US FACTORY,,, Memphis TN (CEO Jared Comers) capacity 20,000 printers currently making and selling 14,000 printers
The American Company has 3 factories. Information as follows:
US FACTORY,,, Memphis TN (CEO Jared Comers) capacity 20,000 printers currently making and selling 14,000 printers at $500 each. It costs Memphis facility$300 to make a printer.
GERMAN FACTORY,,,, Munich Germany (CEO Jason Blue) capacity 20,000 printers currently making and selling 13,000 printers at $480 each. It costs Munich factory $315 to make a printer.
ENDORIAN FACTORY,,,,LEIA-TOWN (CEO John Wish) CAPACITY 20000 printers currently making and selling 12,000 printers at $450 each. It costs Leia-town $335 to make a printer.
What is the income of each company?
On 1/1/14, the new king of Endor, has approached his medical school friend about purchasing 8000 printers for the Endorian Government at $480 each. The king insists that the sale be recorded through Leia-town, but doesnt care where the printers are manufactured. Currently, there is a 10% excise tax (on the cost; a sales tax on imports coming from America) of any products coming from America into Endor. As head of the Company how do you acquire the 8000 printers to sell to the Endorian government? What is the new income for each company? American Company is giving $50,000 in bonuses; how do you divide the bonus among the 3 CEOs? Explain your answer
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