Queation Heip tax eates are 199 and atish tax rates are 34% The markup was 15% and the Corporate management off Tormingion Edge is conaidering repositioning peoita within he multinational company What happers to the prots of Chinglish Dirk and Toningtion Edge was ncreased to 20% and te markup at Toringtn was noduced to 10%? what the impact artis mposioning onconsoldated anenta. , and te consoldated roults of both, the markup at Chinglish Caloulate the profts of Chinglish Dik and Torrington Edge, and the consolidalad rosuits of both, f the markoup at Chinglish was increased to Briish pound) Chinglish Dirk Tarrington Edge Consolidated British pounds) (British pounds) British pounds) Constructing Transfer Salee) Price per Unit( 14,000 E Overhead Total costs Desired markup anfer price (sales price)E 3,800 1,400 income Statement Sales price Less total conts Taxable inoome Less taxes Profit, aterax Data Table Constructing Transfer (Sales) Price per Unit Direct costs Overhead Total costs Desired markup Transfer price (sales price) Chinglish Dirk (British pounds) Torrington Edge (British pounds)(British pounds) Consolidated 14,000 3,600 17,600 2,640 20,240 20,240 1,400 21,640 3,246 24,886 Income Statement Sales price Less total costs Taxable income Less taxes Profit, after-tax 60,720,000 (52,800,000) 7,920,000 (1,504,800) 6,415,200 9 74,658,000 (64,920,000) 9,738,000 (3,310,920)1 6,427,080 4,815,720 12,842,280 Print Done