people friendly computer

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People Friendly Computer, Inc., with headquarters in San Francisco, manufactures and sells a desktop computer. People Friendly has three divisions. each of which is located in a different country. Each division is run as a profit center Information on each division follows: (Click the icon to view the data.) Requirements 1. Calculate the after-tax operating income per unit earned by division under the following transfer pricing methods: (a) me price, (b) 200% of full cost and (c) 350% of variable cost. taxes are not included in the computation of the cost-based prices) 2. Which transfer pricing method(s) will maximize the after-taxe horatiniram na nil Paine France Method A Method B Method C 390 700$ 420 China division Division revenue per unit Cost per unit Division Variable cost per unit 120 120 120 230 230 Division fixed cost per unit 230 350 350 350 Total division cost per unit Help me solve this Etext pages Get more help Similar que People Friendly Computer, Inc., with headquarters in San Francisco, manufactures and sells a desktop computer. People Friendly has three divisions. each of which is located in a different country. Each division is run as a profit center. Information on each division follows: (Click the icon to view the data) Requirements 1. Calculate division u price, (b) taxes are prices.) 2. Which trai neratin $ 1,100 $ 2,800 $ 2,520 390 700 Division revenue per unit Cost per unit: Transferred-in cost per unit Division variable cost per unit Division fixed cost per unit Total division cost per unit Division operating income per unit 420 300 300 300 400 400 400 1.090 1,400 1,120 10 1,400 1.400 An PAN People Friendly Computer, Inc., with headquarters in San Francisco, manufactures and sells a desktop computer. People Friendly has three divisions. each of which is located in a different country. Each division is run as a profit center. Information on each division follows: (Click the icon to view the data.) CRO Requirem 1. Calcu divisi price, taxes prices 2. Which norati $ 8 $ 1,120 $ 1.120 Division net income per unit United States division $ 3,800 $ 3,800 $ 3,800 Division revenue per unit Cost per unit: Transferred-in cost per unit Division variable cost per unit Division fixed cost per unit 2,800 2,520 1.100 170 170 170 175 175 175 People Friendly Computer, Inc., with headquarters in San Francisco, manufactures and sells a desktop computer. People Friendly has three divisions, each of which is located in a different country. Each division is run as a profit center. Information on each division follows: (Click the icon to view the data.) Requirement 1. Calculate division price, (b taxes are prices.) 2. Which tre neratin 942 1,445 Total division cost per unit 3,145 2.865 Division operating income per unit 2,355 655 935 Income tax at 40% 262 374 $ Division net income per unit 1.433 $ 393 $ 561 Requirement 2. Which transfer pricing method(s) will maximize the after-tax operating income per unit of Begin by calculating the total after-tax operating income of People Friendly Computer under each method, Help me solve this Etext pages Get more help People Friendly Computer, Inc., with headquarters in San Francisco, manufactures and sells a desktop computer. People Friendly has three divisions. each of which is located in a different country. Each division is run as a profit center. Information on each division follows: (Click the icon to view the data.) Requirements 1. Calculate the a division undert price, (b) 200% taxes are not in prices.) 2. Which transfer- nnerating inn 1,413 $ 393 $ 561 Division net income per unit Requirement 2. Which transfer pricing method(s) will maximize the after-tax operating income per unit of People Begin by calculating the total after-tax operating income of People Friendly Computer under each method. Method A 1.449 $ Method B 1.758 $ Method C 1.730 $ Total after-tax operating income Method B will maximize the after-tax operating income per unit. Easy Keys Computer, Inc. with headquarters in San Francisco, manufactures and sells a desktop computer. Easy Keys has three divisions, each of which is located in a different country. Each division is run as a profit center. Information on each division follows (Click the icon to view the data) Requirements 1. Calculate the after-tax operating income per unit camed by each division under the following transfer pricing methods (a) market price. (b) 200% of full cost, and (c) 400% of variable cost. (Income taxes we not included in the computation of the cost-based transfer prices) 2. Which transfer pricing method(s) will maximize the after-tax corating income per unit of Easy Kevs Computer? Requirement 1. Calculate the after-tax operating income per unit eamed by each division under the following transfer pricing methods: (a) market price, (b) 200% of full cost, and (c) 400% of variable cost. (Income taxes are not included in the computation of the cost-based transfer prices) Begin with calculating the after tax operating income for the China division under each method. Then complete the table for South Korea and the Uruted States, (Corwert all foreign currencies to US dollars) Method A Method B Method C China division Division revence per un Etext pages Get more help Help me solve this Clear all Check answer - - Definition a China division - manufactures memory devices and keyboards b. South Korea division-assembles desktop computers using locally manufactured parts, along with memory devices and keyboards from the China Division c. U.S. division-packages and distributes desktop computers Print Done Andi - Data table The costs for the work done in each division for a single desktop computer are as follows: China division: Variable cost = 1,200 yuan Fixed cost = 1,800 yuan South Korea division: Variable cost = 340,000 won U.S. division Fixed cost = 490,000 won Variable cost = $110 Fixed cost = $190 Chinese income tax rate on the China division's operating income: 40% South Korean income tax rate on the South Korea division's operating income: 20% U.S. income tax rate on the U.S. division's operating income: 30% Each desktop computer is sold to retail outlets in the United States for $4,200. Assume Print Done le - Data table We were Fixed cost $190 Chinese income tax rate on the China division's operating income: 40% South Korean income tax rate on the South Korea division's operating income: 20% U.S. income tax rate on the U.S. division's operating income: 30% Each desktop computer is sold to retail outlets in the United States for $4,200. Assume that the current foreign exchange rates are as follows: 8 yuan = $1 U.S. 1,000 won = $1 U.S. Both the China and the South Korea divisions sell part of their production under a private label. The China division sells the comparable memory/keyboard package used in each Easy Keys desktop computer to a Chinese manufacturer for 4,200 yuan. The South Korea division sells the comparable desktop computer to a South Korean distributor for 1,450,000 won Print Done