Case 1:
COGS, parent 600,000.00
COGS, subsidiary 250,000.00
intercompany sales (80,000.00)
UPEI (80,000 x 20% x 50% GPR) 8,000.00
Conso COGS 778,000.00
Case 2:
COGS, parent 720,000.00
COGS, subsidiary 350,000.00
Intercompany sales (120,000.00)
RPBI (80,000 x 20% x 40%) (6,400.00)
UPEI (120,000 x 30% x 40%) 14,400.00
Conso COGS 958,000.00
PROBLEM 3:
Gross profit, parent 10,000,000.00
Gross profit, subsidiary 5,600,000.00
RPBI - upstream (240,000 X 25%) 60,000.00
RPBI - downstream (100,000 x 25 / 125) 20,000.00
UPEI - upstream (160,000 x 25%) (40,000.00)
UPEI - downstream (40,000 x 25 / 125) (8,000.00)
Conso Gross Profit 15,632,000.00