Required: a. Suppose Manufacturing would have excess capacity even with the demand from Distribution....

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Accounting

Required:
a. Suppose Manufacturing would have excess capacity even with the demand from Distribution. Ignoring tax implications, what
transfer price would you recommend Cascade Containers adopt?
b. What would be the total taxes Cascade Containers paid under the policy you recommend in requirement (a)?
c. Suppose Manufacturing has no excess capacity. Ignoring tax implications, what transfer price would you recommend Cascade
Containers adopt?
d. What would be the total taxes Cascade Containers paid under the policy you recommend in requirement (c)?
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