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Company Centennial has two divisions. The forcasted details of operations is shown below for the upcoming month. _-m- -I! - _ Units transferred internally( no

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Company Centennial has two divisions. The forcasted details of operations is shown below for the upcoming month. _-m- -I! - _ Units transferred internally( no ending 3, 000 inventory for both divisions) Required: a) What transfer price should be sset for the company to minimize its total income taxes? Show your calculations and explain the reason. 2 marks b) If the company desires to minimize its total income taxes, calculate the amount of tax liability in each division. 6 marks c) What impacts on the behaviours or attitudes might occur within divisions if the company adopts this transfer price. 2 marks Total 10 marks

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