Problem
US FACTORY, Memphis TN (CEO Austin Powers) 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 Justin Bieber) 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 Jessica Simpson) 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? The Greedy American Company is going to distribute $50,000 in bonuses to the 3 factories, how much do you give each CEO? Defend your answer.
• On 1/1/12, Dr. Evil the new king of Endor, has approached his medical school friend Jessica Simpson (yes, she went to medical school) about purchasing 8000 printers for the Endorian Government at $480 each. Dr. Evil insists that the sale be recorded through Leia-town, but doesn't care where the printers are manufactured. Currently, there is a 10% excise tax (on the cost; LIKE A SALES TAX ON IMPORTS FROM AMERICA) of any products coming from America into Endor. As head of Greedy Company how do you acquire the 8000 printers to sell to the Endorian government? What is the new income for each company? Greedy is again giving $50,000 in bonuses; how do you divide the bonus among the 3 CEO's? Defend your answer.