19. Continue the assumption in question 18. However, now NissanAmerica considers charging Nissan Japan for 120 per EV (unit). If so,what are the combined net profits and the total corporate tax of allNissans (per week)?Net profit-3500; Sum of corporate tax=1500Net profit=70; Sum of corporate tax=25Net profit=3212.5; Sum of corporate tax=1212.5ONet profit=0; Sum of corporate tax=1212.520. Now Nissans consider two options as what have found in question18 and 19. Which of the following option will be all Nissans' finaldecision?O Nissan America sells at the price of 20 per EV (unit) to Nissan Japan.O Nissan America sells at the price of 120 per EV (unit) to Nissan Japan.*1 18. Suppose that corporate income tax in Japan is 30% for largeenterprises. And one of them is Nissan Japan. Assume that NissanJapan places its electric vehicles (EV) factory in California, USA bysetting up Nissan America. California charges enterprises with a 10%corporate (flat) income tax rate. Suppose the demand of Nissan EV inJapan is p=220-2Q (p: price in one hundred thousand yen, Q is numberof EV per week). Costs of transporting EV cars from California toJapanese customers and taxes and fees related to export-importactivities are assumed to be zero. Its production cost in California isconstant at 20 per unit. If Nissan American sells EVS produced inCalifornia to Nissan Japan at its production cost, what are the combinednet profits of all Nissans and total corporate income tax the NissanJapan has to pay (per week)? (Note: Nissan Japan will use the transferprice as its marginal cost.)ONet profit=5000; Sum of corporate tax=1500Net profit=3500; Sum of corporate tax=1500ONet profit=70; Sum of corporate tax=30Net profit=3500; Sum of corporate tax=30

To determine the combined net profits of all Nissans and the total corporate income tax that Nissan…

19. Continue the assumption in question 18. However, now Nissan America considers charging Nissan Japan for 120 per EV (unit). If so, what are the combined net profits and the total corporate tax of all Nissans (per week)? ONet profit-3500; Sum of corporate tax=1500 Net profit=70; Sum of corporate tax=25 Net profit=3212.5; Sum of corporate tax=1212.5 ONet profit=0; Sum of corporate tax=1212.5 20. Now Nissans consider two options as what have found in question 18 and 19. Which of the following option will be all Nissans' final decision? O Nissan America sells at the price of 20 per EV (unit) to Nissan Japan. Nissan America sells at the price of 120 per EV (unit) to Nissan Japan.

19. Continue the assumption in question 18. However, now Nissan America considers charging Nissan Japan for 120 per EV (unit). If so, what are the combined net profits and the total corporate tax of all Nissans (per week)? ONet profit-3500; Sum of corporate tax=1500 Net profit=70; Sum of corporate tax=25 Net profit=3212.5; Sum of corporate tax=1212.5 ONet profit=0; Sum of corporate tax=1212.5 20. Now Nissans consider two options as what have found in question 18 and 19. Which of the following option will be all Nissans' final decision? O Nissan America sells at the price of 20 per EV (unit) to Nissan Japan. Nissan America sells at the price of 120 per EV (unit) to Nissan Japan.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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