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Company X, a multinational corporation, incurs a total cost of $1,000,000 for producing a product. The product is sold to its subsidiary, Company Y, located
Company X, a multinational corporation, incurs a total cost of $1,000,000 for producing a product. The product is sold to its subsidiary, Company Y, located in a tax haven, for a transfer price of $800,000. If the subsidiary sells the product to external customers for $1,200,000, what is the subsidiary's profit margin?
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