A European manufacturer has subsidiaries in Canada and in Mexico. The marginal tax rates on corporate income are 30 percent in Mexico and 38 percent in Canada. Suppose the Mexican subsidiary sells 2,000 units per month to the Canadian affiliate at a transfer price of $34,000 per unit. The transfer price can be set at any level between $30,000 and $39,000. At what transfer price will overall corporate taxes paid be minimized? 30,000 $39,000 $34,000