=+19-24 KK Multinational transfer pricing, goal congruence (continuation of 19-23)

OBJECTIVES 3, 4, 8, 9 Suppose that the Australian division could sell as many units of product B12 as it makes at $900 per unit in the US market, net of all marketing and distribution costs.

Required 1 From the viewpoint of Derwent Ltd as a whole, would after-tax operating profit be maximised if it sold the 10000 units of product B12 in Australia or in the United States? Show your calculations.