Compute the manufacturing income respectively

Reference no: EM132886281

Question

TC Company manufactures wooden furniture for the local and export market. It has a distribution outlet abroad which handles foreign sales. It bills all customers, including the foreign outlet, 70% above manufacturing costs. The foreign outlet bills its customers 100% above TC Company's billing price. TC Company reports P3,400,000 in total sales inclusive of sales to the foreign outlet. The foreign outlet reports P2,720,000 total sales to customers.

Compute the manufacturing income respectively earned within and earned without the Philippines.

Reference no: EM132886281

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