Global Industries transfers parts between divisions in two countries, Eastland and Westland. Eastland’s tax rate is 8%, and Westland’s tax rate is 16%. To minimize tax payments and maximize net income, Global should establish transfer prices that:

(a) allocate contribution margin equally between Eastland and Westland.

(b) allocate more contribution margin to Eastland.

(c) allocate more contribution margin to Westland.

(d) allocate half as much contribution margin to Eastland as it does to Westland.