Giant Company has two subsidiary. Both companies make identical computer printers Information about the two subsidiaries for 2009 is as follows: ALPHA OMEGA Location Brazil Chile Sales Price (US dollars) $1000 $1000 Production cost per unit $700 $650 Production capacity 20000units 30000 units Current production/sales 10000 units 20000 units Tax rate 40% 40% Part 1: determine the after tax profit of Alpha and Omega. How do you evaluate Alpha and Omega (cost, profit, or revenue center) Giant Company has $40,000 in bonuses to distribute to the 2 divisions, how do you allocate the bonuses (note: you must distribute the entire $40,000) In 2010 Giant purchases a third company called Gamma. Gamma is located in Costa Rica and sells computer printers which it acquires from other manufacturers. Information about Gamma is as follows: Sales price ($) $1000 Purchase price of printers $850 Sales 9000 printers Taxes 40% In 2010 Alpha and Omega will continue to have the same sales to their local customers REQUIRED: FOR 2010 A) HOW DO YOU SUPPLY GAMMA WITH PRINTERS? B) WHAT TRANSFER PRICE TO YOU CHARGE? C) HOW DO YOU EVALUATE ALPHA, GAMMA AND OMEGA (COST, REVENUE OR PROFIT CENTER) D) YOU NOW HAVE $60,000 IN BONUSES TO DISTRIBUTE TO THE 3 COMPANIES, HOW DO YOU DO IT? It is now 2013 and the Brazil has passed a tax break on exports. Now, any exports from Brazil are taxed at only 10%. Information about Alpha, Omega and Gamma for 2013 are as follows: ALPHA OMEGA Location Brazil Chile Sales Price (US dollars) $1020 $1015 Production cost per unit $690 $660 Production capacity 22000units 30000 units Current production/sales 11500 units 20500 units Tax rate 40% 40% Gamma selling price $995 Sales in units 9200 tax rate 40% cost of printers from local Costa Rican suppliers $ 820 REQUIRED: FOR 2013