HD Television is a multinational corporation that operates two divisions, A and B, in two different countries. Division A operates in a country with a 20% corporate tax rate while Division B operates in a country with a 40% corporate tax rate. Division A manufactures an electrical component that its sells to Division B, which in turn uses the electrical component to complete final construction of the televisions. Therefore, the internal sale between the two divisions requires that a transfer price be established. Which of the following transfer prices would result in the smallest after-tax profit for HD Television as a whole?

a. $26

b. $40

c. $33

d. $38

e. $44