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Chinglish Dirk (B). 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 Bntish tax rates are 32%. The markup was 15% and the sales volume was 3,000 unis. Chingliah caleulates its profit per containet as follows (all values in British pounds) Corporate management of Torrington Edge wishes to repesition proft in Hong Kong, It is, however, facing two constraints. Firt, the final salos price in Great Briain must be E20,000 or less to remain competitive. Secondly, the British tax authortios-in working with Torrington Edge's cost accounting staff-has established a maximum transfer price allowed (from Hong Kong) of E17, E00. Prove that the optimal combination of markups is a 25.0% markup at Chinglish and an 8.1% markup in Torington Edge. What is the impact of this reposidoning on consolidated aner-tax profits and lotal tax payments? Calculate the profits of Chinglinh Dikk and Torington Eoge, and the consolidsted rewults of both, it the markip at Chinglah was increased to 25 , 0\%h and the markup at forrington was reduced to 8 . 1% in the following table: (Round to the nearest cent.) (Click an tha fnllnwinn ionn m in nrder tn ranv its rnntants intn a snreadsheat)

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