below is the data table to use for the calculation please make sure that you do

Question

below is the data table to use for the calculation

please make sure that you do all the calculation correctly and get all the results right. I have been very disappointed with the answers of some of the experts.

Chinglish Dirk (A). Chinglish Dirk Company (Hong Kong) exports razor blades to its wholly owned parent company, Torrington Edge (Great Britain Hong Kong tax rates are 19% and British tax rates are 30%. The markup was 15% and the sales volume was 3,000 units. Chinglish calculates its profit per container as follows (all values in British pounds) Corporate management of Torrington Edge is considering repositioning profits within the multinational company. What happens to the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10%? What is the impact of this repositioning on consolidated after-tax profit and total tax payments? Calculate the profits of Chinglish Dirk and Torrington Edge, and the consolidated results of both, if the markup at Chinglish was increased to 20% and the markup at Torrington was reduced to 10% in the following table: (Round to the nearest British pound) Constructing Transfer (Sales) Price per Unit Direct costs Overhead Total costs Desired markup Chinglish Dirk Torrington Edge (British pounds)(British pounds) Consolidated (British pounds) 10,000 £ 3,700 13,700 E 1,300 Is Enter any number in the edit fields and then click Check Answer part remaining Clear All Check Answer This course (Eitman e??@ [? ? *?®, to search

Explanation / Answer

AS PER View point Answer is correct only.

But i noticed in this question that given mark up 15% is on cost or sales is not mentioned specifically .

Hence if you take Markup on cost percentage should be i.e. 15% on sales = 17.65%

so, transfer price may differ. And will get anternative answer also,

Conclusion : You should mention assumptions if question doesn't specifically mentioned anything, otherthan that answer is correct.

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