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spayn [35]
4 years ago
15

1) Affiliate A sells 5,000 units to Affiliate B per year. The marginal income tax rate for Affiliate A is 25% and the marginal i

ncome tax rate for Affiliate B is 40%. Additionally, Affiliate B pays a tax-deductible tariff of 5% on imported merchandise. The transfer price per unit is currently $2000, but it can be set at any level between $2000 and $2400. Determine the optimal transfer price and how much that saves per year.
Business
1 answer:
kenny6666 [7]4 years ago
3 0

Answer:

$240,000

Explanation:

See attached file

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