(Click to view the information.) Data ta Data Table U.S. income tax rate on the U.S division's operating income 36% German income tax rate on the German division's operating income 38% German import duty 15% Variable manufacturing cost per router $355 Full manufacturing cost per router $430 Selling price (net of marketing and distribution costs) in Germany $590 Suppose the United States and German tax authorities only allow transfer prices that are between the full manufacturing cost per unit of $430 and a market price of $500, based on comparable imports into Germany. The German import duty is charged on the price at which the product is transferred into Germany. Any import duty paid to the German authorities is a deductible expense for calculating German income taxes. Requirements 1. Calculate the after-tax operating income earned by the United States and German divisions from transferring 130,000 broadband routers (a) at full manufacturing cost per unit and (b) at market price of comparable imports. (Income taxes are not included in the computation of the cost-based transfer prices.) 2. Which transfer price should the Quince Company select to minimize the total of company import duties and income taxes? Remember that the transfer price must be between the full manufacturing cost per unit of $430 and the market price of $500 of comparable imports into Germany. Explain your reasoning. answer boxes. For items with a zero value, enter "0".) \begin{tabular}{lll} & Full cost & Market price \\ \hline U.S. division & \\ Revenues & \\ Costs & \\ Dull manufacturing cost & \\ Division operating income & \end{tabular}