Save Homework: Chapter 15 Homework Week 12 Score: 0 of 1 pt 5 of 7 (4 complete) HW Score: 56.55%, 3.96 of 7 pts Problem 15-5 (algorithmic) Question Help Chinglish Dirk (A). Chinglish Dirk Company (Hong Kong) exports razor blades to its wholly owned parent company, Torrington Edge (Great Britain). Hong Kong tax rates are 18% and British tax rates are 33%. The markup was 15% and the sales volume was 1,500 units. Chinglish calculates its profit per container as follows (all values in British pounds): PE: Corporate management of Torrington Edge is considering repositioning profits within the multinational company. What happens to the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10%? What is the impact of this repositioning on consolidated after-tax profit and total tax payments? Calculate the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10% in the following table: (Round to the nearest British pound.) Consolidated (British pounds) i Data Table - X Constructing Transfer (Sales) Price per Unit Direct costs Overhead Chinglish Dirk (British pounds) 14,000 3,600 17,600 2640 Torrington Edge (British pounds) 2 0240 1,400 21640 Total costs Constructing Transfer (Sales) Price per Unit Chinglish Dirk (British pounds) Consolidated (British pounds) Desired markup Transfer price (sales price) Torrington Edge (British pounds) 20,240 1,400 14,000 U L Direct costs Overhead Total costs 3,600 17,600 21,640 Income Statement 3,246 0 Sales price Desired markup Transfer price (sales price) 2,640 20,240 24,886 Less total costs 0 Taxable income Income Statement Less taxes Sales price Profit, after-tax Less total costs | Enter any number in the edit fields and then click Check Answer. Taxable income 30,360,000 (26,400,000) 3,960,000 (712,800) 3,247,200 37,329,000 (32,460,000) 4,869,000 (1,606,770) 3,262,230 Less taxes 2,319,570 - part I remaining Clear All Profit, after-tax 6,509,430 ||