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JJ Company (a sweet oil producer operating in Indonesia), a KK subsidiary operating in the United States, sells sweet oil for US$ 500/ton. While the market price is US $ 1,000/ton, with a sales volume of 10,000 tons, there is a difference between real sales to KK companies and sales at international prices of US $ 7,500,000 (50 billion rupiah with an average exchange rate of rupiah against the US dollar of IDR 15,000/US$).Based on this data, give your response:
Problem a. What is the background of the company setting prices market prices!
Problem b. What is the potential tax loss if Indonesia's import tax is 4% and the United States 10%!
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