a.Dougco, a domestic corporation, owns 100% of Thaico, a Thailand corporation. Dougco manufactures top-of-the-line offi ce chairs at a cost of $300 per unit and sells them to Thaico, which resells the goods (without any further processing) to unrelated foreign customers for $450 each. Independent foreign distributors typically earn commissions of 20% (expressed as a percentage of the sales price) on the purchase and resale of products comparable to those produced by Dougco
b.Clairco, a domestic corporation, owns 100% of Shuco, a foreign corporation that manufactures women’s running shoes at a cost of $30 each and sells them to Clairco. Clairco attaches its trade name to the shoes (which has a significant effect on their resale price), and resells them to unrelated customers in the United States for $80 each. Independent foreign manufacturers producing similar running shoes typically earn a gross profit mark-up (expressed as a percentage of the manufacturing costs) of 15%.
c.Tomco, a domestic corporation, owns 100% of Swissco, a Swiss corporation. Tomco manufactures riding lawn mowers at a cost of $2,500 per unit, and sells them to unrelated foreign distributors at a price of $3,750 per unit. Tomco also sells the equipment to Swissco, which then resells the goods to unrelated foreign customers for $4,250 each. The conditions of Tomco’s sales to Swissco are essentially equivalent to those of the sales made to unrelated foreign distributors.
We can only answer your free 3 questions one at a time. You have two options to get your questions answered:... View the full answer
This question was asked on Aug 21, 2012 and answered on Aug 22, 2012.
Recently Asked Questions
- A 3x1¼ type M copper tube double‐pipe counterflow heat exchanger is used to cool a flow of liquid toluene. The heat exchanger consists of three
- Please do not use anybody else paper on this website are any website. Think about one task that you perform in the course of your everyday life that you must
- Review the document titled "The Youth Gangs, Drugs, and Violence Connection", located here. You can also view the article at here. Next, select at least two