Chinglish Dirk (A). Chinglish Dirk Company (Hong Kong) exports razor blades to its wholly-owned parent company, Torrington Edge (Great Britain). Hong Kong tax rates are 18% and British tax rates are 33%. The markup was 15% and the sales volume was 1500 units. Chinglish calculates its profit per container as follows (all values in British pounds): Corporate management of Torrington Edge is considering repositioning profits within the multinational company. What happens to the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10%? What is the impact of this repositioning on consolidated after-tax profit and total tax payments?
Calculate the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10% in the following table:(Round to the nearest British pound.) 
Homework: Chapter 15 Homework Week 12 Save Score: 0 of 1 pt 5 of 7 (4 complete) HW Score: 56.55%, 3.96 of 7 pts Problem 15-5 (algorithmic) Question Help Chinglish Dirk (A). Chinglish Dirk Company (Hong Kong) exports razor blades to its wholly owned parent company, Torrington Edge (Great Britain). Hong Kong tax rates are 18% and British tax rates are 33%. The markup was 15% and the sales volume was 1,500 units. Chinglish calculates its profit per container as follows (all values in British pounds): 2 Corporate management of Torrington Edge is considering repositioning profits within the multinational company. What happens to the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10%? What is the impact of this repositioning on consolidated after-tax profit and total tax payments? Calculate the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10% in the following table: (Round to the nearest British pound.) Constructing Transfer Chinglish Dirk Torrington Edge Torrington Edge Consolidated (Sales) Price per Unit (British pounds) (British pounds) (British pounds) Direct costs 14,000 2 0240 Overhead 3,600 1,400 Total costs 17,600 21640 Desired markup 2640 Transfer price (sales price) 4 Income Statement Sales price Less total costs Taxable income 4 Less taxes Profit, after-tax Enter any number in the edit fields and then click Check Answer. 1 part Clear All Check Answer remainina javascript:doExercise(5); Homework: Chapter 15 Homework Week 12 Save Score: 0 of 1 pt 5 of 7 (4 complete) HW Score: 56.55%, 3.96 of 7 pts Problem 15-5 (algorithmic) Question Help Chinglish Dirk (A). Chinglish Dirk Company (Hong Kong) exports razor blades to its wholly owned parent company, Torrington Edge (Great Britain). Hong Kong tax rates are 18% and British tax rates are 33%. The markup was 15% and the sales volume was 1,500 units. Chinglish calculates its profit per i Data Table Corporate management of Torrington Edge is considering repos Jd the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduce Calculate the profits of Chinglish Dirk and Torrington Edge, and British pound.) duced to 10% in the following table: (Round to the nearest Constructing Transfer (Sales) Price per Unit Chinglish Dirk (British pounds) Torrington Edge (British pounds) 20,240 Consolidated (British pounds) Constructing Transfer Direct costs 14,000 (Sales) Price per Unit Overhead 3,600 1,400 | Direct costs Chinglish Dirk (British pounds) 14,000 3,600 17,600 2640 Overhead Total costs Desired markup Transfer price (sales price) 17,600 2,640 20,240 21,640 3,246 0 24,886 Total costs Desired markup Transfer price (sales price) Income Statement Sales price 30,360,000 (26,400,000) Less total costs Income Statement Sales price Less total costs Taxable income Taxable income 37,329,000 (32,460,000) 4,869,000 (1,606,770) 3,262,230 3,960,000 (712,800) 3,247,200 Less taxes 2,319,570 6,509,430 Profit, after-tax Less taxes Profit, after-tax Print Done Enter any number in the edit fields and then click Check An - part Clear All remaining Check Answer Homework: Chapter 15 Homework Week 12 Save Score: 0 of 1 pt 5 of 7 (4 complete) HW Score: 56.55%, 3.96 of 7 pts Problem 15-5 (algorithmic) Question Help Chinglish Dirk (A). Chinglish Dirk Company (Hong Kong) exports razor blades to its wholly owned parent company, Torrington Edge (Great Britain). Hong Kong tax rates are 18% and British tax rates are 33%. The markup was 15% and the sales volume was 1,500 units. Chinglish calculates its profit per container as follows (all values in British pounds): 2 Corporate management of Torrington Edge is considering repositioning profits within the multinational company. What happens to the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10%? What is the impact of this repositioning on consolidated after-tax profit and total tax payments? Calculate the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10% in the following table: (Round to the nearest British pound.) Constructing Transfer Chinglish Dirk Torrington Edge Torrington Edge Consolidated (Sales) Price per Unit (British pounds) (British pounds) (British pounds) Direct costs 14,000 2 0240 Overhead 3,600 1,400 Total costs 17,600 21640 Desired markup 2640 Transfer price (sales price) 4 Income Statement Sales price Less total costs Taxable income 4 Less taxes Profit, after-tax Enter any number in the edit fields and then click Check Answer. 1 part Clear All Check Answer remainina javascript:doExercise(5); Homework: Chapter 15 Homework Week 12 Save Score: 0 of 1 pt 5 of 7 (4 complete) HW Score: 56.55%, 3.96 of 7 pts Problem 15-5 (algorithmic) Question Help Chinglish Dirk (A). Chinglish Dirk Company (Hong Kong) exports razor blades to its wholly owned parent company, Torrington Edge (Great Britain). Hong Kong tax rates are 18% and British tax rates are 33%. The markup was 15% and the sales volume was 1,500 units. Chinglish calculates its profit per i Data Table Corporate management of Torrington Edge is considering repos Jd the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduce Calculate the profits of Chinglish Dirk and Torrington Edge, and British pound.) duced to 10% in the following table: (Round to the nearest Constructing Transfer (Sales) Price per Unit Chinglish Dirk (British pounds) Torrington Edge (British pounds) 20,240 Consolidated (British pounds) Constructing Transfer Direct costs 14,000 (Sales) Price per Unit Overhead 3,600 1,400 | Direct costs Chinglish Dirk (British pounds) 14,000 3,600 17,600 2640 Overhead Total costs Desired markup Transfer price (sales price) 17,600 2,640 20,240 21,640 3,246 0 24,886 Total costs Desired markup Transfer price (sales price) Income Statement Sales price 30,360,000 (26,400,000) Less total costs Income Statement Sales price Less total costs Taxable income Taxable income 37,329,000 (32,460,000) 4,869,000 (1,606,770) 3,262,230 3,960,000 (712,800) 3,247,200 Less taxes 2,319,570 6,509,430 Profit, after-tax Less taxes Profit, after-tax Print Done Enter any number in the edit fields and then click Check An - part Clear All remaining Check
