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 17% and British tax rates are 32%. The markup was 15% and the sales volume was 2,000 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.)

Please present answers like how the table is displayed. I'll be sure to thumbs up!

Data Table Chinglish Dirk Consolidated Constructing Transfer (Sales) Price per Unit Torrington Edge (British pounds) (British pounds) (British pounds) Direct costs 11,000 16,790 Overhead 3,600 1,400 Total costs 14,600 18,190 2,190 2,729 Desired markup Transfer price (sales price) 16,790 20,919 Income Statement Sales price 33,580,000 Less total costs (29,200,000) 41,838,000 (36,380,000) 5,458,000 Taxable income 4,380,000 Less taxes (744,600) (1,746,560) 2,491,160 Profit, after-tax 3,635,400 3,711,440 7,346,840 Chinglish Dirk Consolidated Constructing Transfer (Sales) Price per Unit Torrington Edge (British pounds) (British pounds) (British pounds) Direct costs 11,000 Overhead 3,600 1,400 Total costs 14,600 Desired markup Transfer price (sales price) Income Statement Sales price Less total costs Taxable income Less taxes Profit, after-tax