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For many years Miller Company manufactured television tubes in Massachusetts at a per unit cost of $100 for direct labor, $50 for direct material, and
For many years Miller Company manufactured television tubes in Massachusetts at a per unit cost of $100 for direct labor, $50 for direct material, and $20 for overhead. A portion of production was sold to Fiona Manufacturing, Ltd., Miller's wholly owned distribution affiliate in Ireland, for $220 per unit. The Irish affiliate incurred an additional $30 per unit of direct costs and resold to European television manufactures for $300 per unit. No other costs were involved, expect for income taxes at 34% in US and 12,5% in Ireland. Comprehensive tax reform legislation passed by the U.S. Congress in 2017 lowered U.S. corporate income taxes to 20%, effective in 2018. Miller judged that it could raise or lower its export sales price to its Irish affiliate by up to 10% without causing a tax challenge from either Irish or U.S. tax authorities. Miller's president wondered if she should change the firm's Irish transfer price in the light of the new U.S. tax law. al In 2017, what was Miller's consolidated after-tax profit per unit sold to Fiona? $. (round your answer to 2 decimals in $ and fill o to The consolidated after-tax profit per unit is meet 2 decimals requirement if needed) b/ In 2018 with no change in transfer price, what was Miller's consolidated after-tax profit per unit sold to Fiona? $. (round your answer to 2 decimals in $ and fill o to The consolidated after-tax profit per unit is meet 2 decimals requirement if needed) c/ In 2018 with 10 % increase in the transfer price, what was Miller's consolidated after-tax profit per unit sold to Fiona? $. (round your answer to 2 decimals in $ and fill o to The consolidated after-tax profit per unit is meet 2 decimals requirement if needed)) d/ In 2018 with 10 % decrease in the transfer price, what was Miller's consolidated after-tax profit per unit sold to Fiona? $. (round your answer to 2 decimals in $ and fill o to The consolidated after-tax profit per unit is meet 2 decimals requirement if needed))
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