Origami Does Business in States X and Y A Calculate Origami's Apportionment Factors, Income Apportioned to Each State

Origami does business in states X and Y. State X uses an equally-weighted three-factor apportionment formula and has a 4 percent state tax rate. State Y uses an apportionment formula that double-weights the sales factor and has a 6 percent tax rate. Cromwell's taxable income, before apportionment, is $3 million. Its sales, payroll, and property information are as follows. $$\begin{array} { | l | r | r | r | } \hline & { X } & { Y } & { \text { Total } } \\\hline \text { Gross receipts/sales } & \$ 575,000 & \$ 100,000 & \$ 675,000 \\\hline \text { Payroll } & 140,000 & 60,000 & 200,000 \\\hline \text { Property } & 600,000 & 150,000 & 750,000 \\\hline\end{array}$$ a. Calculate Origami's apportionment factors, income apportioned to each state, and state tax liability.
b. State Y is considering changing its apportionment formula to a single sales factor. Given its current level of activity, would such a change increase or decrease Origami's state income tax burden? Provide calculations to support your conclusion.