You did not receive full credit for this question in a previous attempt 114 points Problem 15-43 Transfer Prices and Tax Regulations: Ethical Issues (.015-4) Gage Corporation has two operating divisions in a semiautonomous organizational structure, Adam Division, located in the United States, produces a specialtired electrical component that is an input to Byte Division, located in the south of England. Adama uses de capacity to produce the component, which has a domestic market price of $11. ils variable costs are per unit Gago's u.8. tax rate is 40 percent of income In addition to the transfer price for each component received from Adams, Bute pays a $2 per unit shipping fee. The component becomes a part of its assembled product, which costs an additional $2 to produce and transferring at either variable cost or market price als for an equivalent of $25. Bule could purchase the component from a Manchester (England) suppler for 10 per unit. Gage's English tax rate is 60 percent of income. Assume that English tax laws permit Required: 1. What are the respective prots her tax for both the Adarna Division and Bute Division of Gape it the transfer price in Sound your answers to 2 decimal place..). Prorax (Adams) Profit after tax Bull $ 0.00 $ 600 -2. What we the respective profits her tax for both the Adams Division and Bute Division of Gage if the transfer price is $11. (Round your anwwers to 2 decimal places.) S420 Profit ahertax Adams Protaras) $ 4.00 - What transfer price is economically optimal for Gage Corporation? The transfer price economically option for Gage Corporation is per unit The water price economically optional for Gage Corporation is 111 perunt