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Need assistance with Managerial Accounting please. Data is given. Thank yyou The Datatron Company manufactures telecommunications equipment at its plant in Scranton. Pennsylvania. The company

Need assistance with Managerial Accounting please. Data is given. Thank yyou

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The Datatron Company manufactures telecommunications equipment at its plant in Scranton. Pennsylvania. The company has marketing divisions throughout the world. A Datatron marketing division in Hamburg, Germany, imports 125,000 broadband routers from the United States. The information about the router is available in the accompanying table. 0 (Click the icon for the router information.) Suppose the United States and German tax authorities only allow transfer prices that are between the full manufacturing cost per unit of $420 and a market price of $495, based on comparable imports into Germany. The German import duty is charged on the price at which the product is transferred into Germany. Any import duty paid to the German authorities is a deductible expense for calculating German income taxes. R_equired Requirement 1:. Calculate the after-tax operating income earned by the United States and Gen'nan divisions from transferring 125,000 broadband routers at full manufacturing cost per unit. (Income taxes are not included in the computation of the cost-based transfer prices.) (Round your nal answer to the nearest whole dollar. Use parentheses or a minus sign for a negative value.) The after-tax operating income earned by the United States and German divisions from transferring the broadband routers using the full manufacturing cost per unit is $ Raqulrement1b. Calculate the after-bx operating income earned by the United Skates and German divisions from transferring 125,000 broadband routers at market price of comparable imports. (Income taxes are not included in the computation of the cost-based transfer prices.) (Round your nal answer to the nearest whole dollar. Use parentheses or a minus sign for a negative value.) The after-tax operating income earned by the United States and German divisions from transferring the broadband routers using the market price of comparable imports is $ Requirement 2. Which transfer price should the Questron Company select to minimize the total of company import duties and income taxes? Remember that the transfer price must be between the full manufacturing cost per unit of $420 and the market price of $495 of comparable imports into Germany. Explain your reasoning. Datatron Company will minimize import duties and income taxes by setting the transfer price at its lV level of $ , i G Router information US. income tax rate on the U.S. division's operating income German income tax rate on the German division's operating income German import duty Variable manufacturing cost per router $ Full manufacturing cost per router $ Selling price (net of marketing and distribution costs) in Germany $ 34% 35% 12% 295 420 595

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