=+Both the China and the South Korea divisions sell part of their production under a private label. The China Division sells the comparable memory/keyboard package used in each User Friendly Computer desktop computer to a Chinese manufacturer for 4500 yuan. The South Korea Division sells the comparable desktop computer to a South Korean distributor for 1340000 won.

Required 1 Calculate the after-tax operating profit per unit earned by each division under the following transfer-pricing methods:

(a) market price,

(b) 200% of full cost and

(c) 350% of variable cost. (Income taxes are not included in the calculation of the cost-based transfer prices.)