D. Assume that Walker moved its GP'S production facility to a division located in Germany, which is subject to a 45% tax rate. The transfer took place at $180. Shipping fees (absorbed by the overseas division) doubled to $20; the German division paid an import duty equal to 10% of the transfer price; and labour, overhead, and additional material costs were $150 per GPS. If the German selling price of the GPS amounted to $450.

Calculate the income for the PEI Division, the Nova Scotia Division, and the Income for Walker as a whole.

Answer rating: 100% (QA)

To calculate the income for each division and Walker as a whole we need to consider the costs and revenues associated with the production and sale of the GPS devices Lets break down the calculations s... View the full answer