14. Superior Brakes Corporation manufactures truck brakes at its plant in Mansfield, Ohio, at a cost of $10 per unit. Superior sells its brakes directly to U.S. truck makers at a price of $15 per unit. It also sells its brakes to a wholly-owned sales subsidiary in Brazil that, in turn, sells the brakes to Brazilian truck makers at a price of $16 per unit. Transportation cost from Ohio to Brazil is $0.20 per unit. Superior's sole competitor in Brazil is Bomfreio SA, which manufactures truck brakes at a cost of $12 per unit and sells them directly to truck makers at a price of $16 per unit. There are no substantive differences between the brakes manufactured by Superior and Bomfreio. Required: Given the information provided, discuss the issues related to using (a) the comparable uncontrolled price method, (b) the resale price method, and (c) the cost-plus method to determine an acceptable dansfer price for the sale of truck brakes from Superior Brakes Corporation to its Brazilian subsidiary.

14. Superior Brakes Corporation manufactures truck brakes at its plant in Mansfield, Ohio, at a cost of $10 per unit. Superior sells its brakes directly to U.S. truck makers at a price of $15 per unit. It also sells its brakes to a wholly-owned sales subsidtary in Brazil that, in turn, sells the brakes to Brazilian truck makers at a price of $16 per unit. Transportation cost from Ohio to Brazil is $0.20 per unit. Superior's sole competitor in Brazil is Bomfreio SA, which manufactures truck brakes at a cost of $12 per unit and sells them directly to truck makers at a price of $16 per unit. There are no substantive differences between the brakes manufactured by Superior and Bomfreio Required: Given the information provided, discuss the issues related to using (a) the comparable uncontrolled price method, (b) the resale price method, and (c) the cost-plus method to determine an acceptable Aansfer price for the sale of truck brakes from Superior Brakes Corporation to its Brazilian subsidiary