Question: please answer entire question with all blanks filled Data table Income Statement and the sales volume was 3.000 unit. Chinglish calculates its probl por cortainer






Data table Income Statement and the sales volume was 3.000 unit. Chinglish calculates its probl por cortainer as follow (all values in Briash pounds): authorties - in working with Toerington Edge's cost scoounting stat- has established a maximum trinstor price allowed chom Hong Kongl of E1T abo. impast of this repostioning on consolidabod aftectax profies and total tax papments? Income Statement Sales price Less total costs Taxable income Less taxes Profit, after-tax Data table Calculate the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 35.0% and the markup at Torrington was reduced to 4.64% in the following table: (Round to the nearest Bnitish pound.) Chinglish Dirk (C). Chinglish Dirk Company (Hong Kong) exports razor blades to its wholly owned parent company, Torrington Edge (Great Britain). Hong Kong tax rates are 20% and British tax rates are 33%. The markup was 15% and the sales volume was 3,000 units. Chinglish calculates its profit per container as follows (all values in Bntsh pounds): Corporate management of Torrington Edge wishes to reposition profit in Hong Kong. It is, however, facing two constraints. First, the final sales price in Great Britain must be $20,000 or less to remain competitive. Secondly, the British tax authorities-in working with Torrington Edge's cost accounting staff-has established a maximum transfer price allowed (from Hong Kong) of 17,800. Not to leave any potential tax repositioning opportunities unexplored, Torrington Edge wants to combine the components described above with a redistribution of overhead costs. H overhead costs could be reallocated between the two units, but still total 5,000 per unit, and maintain a minimum of 1,750 per unit in Hong Kong. prove that the optimal combination of markups is a 35.0% markup at Chinglish and an 4.64% markup in Torrington Edge. What is the impact of this repositioning on consolidated after-tax profits and total tax payments? Data table Data table Income Statement and the sales volume was 3.000 unit. Chinglish calculates its probl por cortainer as follow (all values in Briash pounds): authorties - in working with Toerington Edge's cost scoounting stat- has established a maximum trinstor price allowed chom Hong Kongl of E1T abo. impast of this repostioning on consolidabod aftectax profies and total tax papments? Income Statement Sales price Less total costs Taxable income Less taxes Profit, after-tax Data table Calculate the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 35.0% and the markup at Torrington was reduced to 4.64% in the following table: (Round to the nearest Bnitish pound.) Chinglish Dirk (C). Chinglish Dirk Company (Hong Kong) exports razor blades to its wholly owned parent company, Torrington Edge (Great Britain). Hong Kong tax rates are 20% and British tax rates are 33%. The markup was 15% and the sales volume was 3,000 units. Chinglish calculates its profit per container as follows (all values in Bntsh pounds): Corporate management of Torrington Edge wishes to reposition profit in Hong Kong. It is, however, facing two constraints. First, the final sales price in Great Britain must be $20,000 or less to remain competitive. Secondly, the British tax authorities-in working with Torrington Edge's cost accounting staff-has established a maximum transfer price allowed (from Hong Kong) of 17,800. Not to leave any potential tax repositioning opportunities unexplored, Torrington Edge wants to combine the components described above with a redistribution of overhead costs. H overhead costs could be reallocated between the two units, but still total 5,000 per unit, and maintain a minimum of 1,750 per unit in Hong Kong. prove that the optimal combination of markups is a 35.0% markup at Chinglish and an 4.64% markup in Torrington Edge. What is the impact of this repositioning on consolidated after-tax profits and total tax payments? Data table
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
