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Supex Hong Kong) exports 1.000 containers of razor blades to its U.S. based parent company, Eversharp. Hong Kong tax rates are 15% and the U.S.

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Supex Hong Kong) exports 1.000 containers of razor blades to its U.S. based parent company, Eversharp. Hong Kong tax rates are 15% and the U.S. tax rates are 35%. With the desired markup of 15% for each division, what is the consolidated after-tax profit? Eversharp (U.S.) Construction Price Per Container Direct costs Overhead costs Total costs Desired markup (15%) Transfer price (Sales price) USD 3,452,250 Sharpex (Hong Kong) USD 10,000 USD 4.000 USD 14,000 USD 2.100 USD 16,100 USD 16,100 USD 1.000 USD 17,100 USD 2.565 USD 19,665 USD 2,813,700 USD 3,559,500 OOOO USD 3,716,250 USD 3,931,500

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