Please do not give image format The Blackridge Company manufactures chainsaws at its plant in Sandusky, Ohio. The company has marketing divisions throughout the world. A Blackridge marketing division in Lille, France, imports 200,000 chainsaws annually from the United States. The followinginformation is available:(Click the icon to view the information.) (Click to view additional information.)Read the requirements.Requirement 1. Calculate the after-tax operating income earned by the United States and French divisions from transferring 200,000 chainsaws (a) at full manufacturing cost per unit and (b) at market price of comparable imports. (Income taxes are not included in thecomputation of the cost-based transfer prices.)Begin by calculating the after-tax operating income earned by the United States division from transferring 200,000 chain saws (a) at full manufacturing cost per unit. (Complete all inputUnited States division:RevenuesCosts$ 39,000,000Transferred-in costsImport dutiesTotal division costsDivision operating incomeDivision income taxesDivision after-tax operating income39,000,000Full manufacturing costDivision operating incomeDivision income taxesDivision after-tax operating incomeNext, calculate the after-tax operating income earned by the French division from transferring 200,000 chain saws (a) at full manufacturing cost per unit. (Do not round intermediary calcFrench division:XRevenuesCosts000i Requirements1. Calculate the after-tax operating income earned by the United States andFrench divisions from transferring 200,000 chainsaws (a) at full manufacturingcost per unit and (b) at market price of comparable imports. (Income taxes arenot included in the computation of the cost-based transfer prices.)2. Which transfer price should the Blackridge Company select to minimize thetotal of company import duties and income taxes? Remember that the transferprice must be between the full manufacturing cost per unit of $195 and themarket price of $250 of comparable imports into France. Explain yourreasoning.i Data Table40%U.S income tax rate on the U.S. division's operating incomeFrench income tax rate on the French division's operating incomeFrench import duty45%20%Variable manufacturing cost per chainsaw$ 140$ 195Full manufacturing cost per chainsawSelling price (net of marketing and distribution costs) in France $ 300More Info-Print DoneSuppose the United States and French tax authorities only allow transfer pricesthat are between the full manufacturing cost per unit of $195 and a market price of$250, based on comparable imports into France. The French import duty ischarged on the price at which the product is transferred into France. Any importduty paid to the French authorities is a deductible expense for calculating Frenchincome taxes.

Transfer pricing is a managerial accounting and tax practice used to determine the cost charged…

The Blackridge Company manufactures chainsaws at its plant in Sandusky, Ohio. The company has marketing divisions throughout the world. A Blackridge marketing division in Lille, France, imports 200,000 chainsaws annually from the United States. The following nformation is available: (Click the icon to view the information.) (Click to view additional information.) Read the requirements. Requirement 1. Calculate the after-tax operating income earned by the United States and French divisions from transferring 200,000 chainsaws (a) at full manufacturing cost per unit and (b) at market price of comparable imports. (Income taxes are not included in the omputation of the cost-based transfer prices.) legin by calculating the after-tax operating income eamed by the United States division from transferring 200,000 chain saws (a) at full manufacturing cost per unit. (Complete all input United States division: Revenues Costs Full manufacturing cost Division operating income Division income taxes Division after-tax operating income ext, calculate the after-tax operating income earned by the French division from transferring 200,000 chain saws (a) at full manufacturing cost per unit. (Do not round intermediary cal French division: X Revenues Costs Transferred-in costs Import duties Total division costs Division operating income Division income taxes Division after-tax operating income S 39,000,000 39,000,000 0 0 Requirements 1. Calculate the after-tax operating income eamed by the United States and French divisions from transferring 200,000 chainsaws (a) at full manufacturing cost per unit and (b) at market price of comparable imports. (Income taxes are not included in the computation of the cost-based transfer prices.) 2. Which transfer price should the Blackridge Company select to minimize the total of company import duties and income taxes? Remember that the transfer price must be between the full manufacturing cost per unit of $195 and the market price of $250 of comparable imports into France. Explain your reasoning. Data Table U.S income tax rate on the U.S. division's operating income French income tax rate on the French division's operating income French import duty Variable manufacturing cost per chainsaw Full manufacturing cost per chainsaw Selling price (net of marketing and distribution costs) in France More Info Print Done - 40% 45% 20% 140 $ $ 195 $ 300 Suppose the United States and French tax authorities only allow transfer prices that are between the full manufacturing cost per unit of $195 and a market price o $250, based on comparable imports into France. The French import duty is charged on the price at which the product is transferred into France. Any import duty paid to the French authorities is a deductible expense for calculating French income taxes.