Carol Components operates a Production Division and a Packaging Division. Both divisions are evaluated as profit centers. Packaging buys components from Production and assembles them for sale. Production sells many components to third parties in addition to Packaging. Selected data from the two operations follow:

Production Packaging

Capacity $($units$)51,20025,600$

Sales pricea $ $264$ $ $804$

Variable costsb $ $120$ $ $312$

Fixed costs $ $30,000,000$ $ $18,000,000$

a For Production, this is the price to third parties.

b For Packaging, this does not include the transfer price paid to Production.

Suppose Production is located in Country A with a tax rate of $30$ percent and Distribution in Country B with a tax rate of $10$ percent. All other facts remain the same.