Click here to access 19.23 solution. Derwent Ltd manufactures telecommunications equipment at its plant in Geelong. The company has marketing divisions throughout the world. A Derwent Ltd marketing division in Dallas, USA, imports 10000 units of product B12 from Australia. The following information is available: Suppose that the Australian and US tax authorities only allow transfer prices that are between the full manufacturing cost per unit of $769 and a market price of $917, based on comparable imports into the USA. The US import duty is charged on the price at which the product is transferred into the USA. Any import duty paid to the US authorities is a deductible expense for calculating US income taxes due. Suppose that the Australian and US tax authorities only allow transfer prices that are between the full manufacturing cost per unit of $769 and a market price of $917, based on comparable imports into the USA. The US import duty is charged on the price at which the product is transferred into the USA. Any import duty paid to the US authorities is a deductible expense for calculating US income taxes due. Compute the after-tax operating profit earned by the Australian and US divisions from transferring 10000 units of product B12 at full manufacturing cost per unit