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Company EJ plans to build a new plant to manufacture bicycles. EJ sells its bicycles in the world market for $500 per bike. It could

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Company EJ plans to build a new plant to manufacture bicycles. EJ sells its bicycles in the world market for $500 per bike. It could locate the plant in Province P, which levies a 25 percent tax on business Income. On the basis of the cost of materials and labor in Province P. EJ estimates that its manufacturing cost per bike would be $292. Alternatively, EJ could locate the plant in Province W. which levies a 20 percent tax on business income. On the basis of the cost of materials and labor in Province W, EJ estimates that its manufacturing cost per bike would be $310. 8. Calculate the after-tax profit per bike for each province. b. In which province should Company EJ build its new plant? Complete this question by entering your answers in the tabs below. Required A Required B In which province should Company E) build its new plant? Province P O Province W

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