Company bandwidth has two divisions. The forcasted details of operations is shown below for the upcoming month. B Division A Division B

Location austria India Tax rates 35% 15% Variable costs per unit 70 50 Transfer price (internal) ? Selling price 300 Fixed costs 65000 20100 Units transferred

internally (no ending inventory for both

divisions) 2000 Required: a) What transfer price should be set for the company to minimize its total income taxes? show caluclation explain the reason. b) If the company desires to minimize its total income taxes, calculate the amount of tax liability in each division. c) What impacts on the behaviours or attitudes might occur within divisions if the company adopts this transfer price.