2. Taxdodge, Inc. ships 300,000 dozen guidgets a month from their U.S. subsidiary to their Italian subsidiary. Taxdodge's marginal U.S. tax rate is 30 percent and its marginal Italian tax rate is 40 percent. Quidgets cost $10 per dozen to produce in the United States and sell in Italy for S25 per dozen. Taxdodge believes that it can set the transfer price on quidgets at any price from S15 to S18 per dozen. If Taxdodge wants to maximize after-tax income, what transfer price should it set? What would its consolidated monthly after-tax income on guidgets be? (Ignore other costs). In order to move funds to Italy quickly, Taxdodge adopts a transfer price of $15 per dozen. By how much is monthly after-tax income reduced? How much additional funding is made available to the Italian unit by the price reduction? a. b