Exercise 21-24 (similar to) Dotton Help Tech Friendly Computer, Inc., with headquarters in San Francisco, manufactures and sells a desktop computer Tech Friendly has three divisions, each of which is located in a rent country. Each division is un as a profit center Information on each division follows Click the icon to view the data) Requirements 1. Cal Theater tax operating income per unitamed by each division under the following transfer onangmathode market price 250% of cost and of cou Income taxes ont induced in the computation of the cost sale pross Which trade-Prong method will the after teperating competunto Tech Frendy Computer Requirement 1. Calculate the after-tax operating income per un camned by each division under the following trofer pricing methode market price, by 250 al cost wid te soos otra centrar taxes are not included in the computation of the cost-based transfer prices) Begin with calculating the after-tax operating income for the China division under each method. Then complete the outo South Korea and the United Custom ws) Method A Method Method China division Division report Dost per unit Division variable cost per unit Enter any number in the soit fields and then click Check Answer 0) E Data Table - X quarters in San Fra Fons, each of which ch division follows: earned by each division under 50% of full cost, and (c) 300% on of the cost-based transfer pri the after-tax operating income The costs for the work done in each division for a single desktop computer are as follows: China division Variable cost = 1.100 yuan Fixed cost - 2,100 yuan South Korea division Variable cost = 392,000 won Fixed cost - 532,000 won U.S. division Variable cost = $225 Fixed cost $280 full cost, and (c) 300% of varla operating income po n of the cost-based ating income for the vertall foreign currencies to Method A Chinese income tax rate on the China division's operating income: 30% South Korean income tax rate on the South Korea division's operating income: 20% U.S. income tax rate on the U.S. division's operating income: 40% Each desktop computer is sold to retail outlets in the United States for $4,200. Assume that the current foreign exchange rates are as follows: Done Print then click Check Ches Data Table ters in San Frat each of which vision follows: teamed by each div 50% of full cost, and Jon of the cost-based he after-tax operatin . . tull cost, and (c) 3 . ating income pe the cost-based income for the hvert all foreign cu U.S. division Variable cost - $225 Fixed cost $280 Chinese income tax rate on the China division's operating income: 30% South Korean income tax rate on the South Korea division's operating income: 20% U.S. income tax rate on the U.S. division's operating income: 40% Each desktop computer is sold to retail outlets in the United States for $4 200. Assume that the current foreign exchange rates are as follows: 10 yuan = $1 U.S. 1,400 won = $1 U.S. Both the China and the South Korea divisions sell part of their production under a private label. The China division sells the comparable memory/keyboard package used in each Tech Friendly desktop computer to a Chinese manufacturer for 3,300 yuan. The South Korea division sells the comparable desktop computer to a South Korean distributor for 1,680,000 won. Method A Print Done hen click Check och Friendly computer, Inc with headquarters in San Francisco, manufacturers Requirements computer. Tech Friendly has three divisions, each of which is located in a different country. Each division is 1. un as a profit center Information on each division follow Calculate the after tax operating corto por untamed by each division under the folowng transferring methods are pro c250% of cost and c0% of con Click the icon to view the data) Income taxes are not included in the computation of the based transfer prices 2 Which transfer poing methods) wilmize the atte at operating income per unit of Tech Friendly Computer? Requirement 1. Calculate the after-tax operating income per unit earned by addition under the following transfer pricing method calmanteon (b) 250% of cost and of variabili cost home taxes are not included in the computation of the cool-based transfer prices) Begin with calculating the after-tax operating income for the China divion under each othod. The correct the table for and the United Colors) Method A Method Method China division Division revenue per unit Cost per unit Division variable cost per unit Division fixed cost per unit Enter any number in the edit fields and then click Check Answer Check And run as a profit center. Information on each division follows: (Click the icon to view the data.) transfer pricing methods: (a) market (Income taxes are not included in the Which transfer pricing method(s) wil Tech Friendly Computer? 2. Division revenue per unit Cost per unit Division variable cost per unit Division fixed cost per unit Total division cost per unit Division operating income per unit Income tax at 30% Division net income per unit