Easy Keys Computer Inc., with headquarters in Nepean, Ontario, manufactures and sells a premium Required desktop computer system. Easy Keys has three divisions, each of which is located in a different country. 1. Calculate the after-tax operating income per unit earned by Each division is run as a profit centre. The costs for the work done in each division for a single desktop each division under the following transfer-pricing computer system are as follows: methods: (a) market price, (b) 150% of full cost, and (c) (Click the icon to view the data.) 300% of variable cost. (Income taxes are not included in the computation of the cost-based transfer prices.) 2. Which transfer-pricing method(s) will maximize the after-tax operating income per unit of Easy Keys Computer Inc.? Requirement 1. Calculate the after-tax operating income per unit earned by each division under the following transfer-pricing methods: (a) market price, (b) 150% of full cost, and (c) 300% of variable cost. (Income taxes are not included in the computation of the cost-based transfer prices.) Begin with calculating the after-tax operating income for the China division under each method. Then, complete the table for South Korea and Canada. (Convert all foreign currencies to CA\$. Round all amounts to the nearest cent.) Data table China division Variablecost=1,080yuanFixedcost=2,070yuanSouthKoreadivisionVariablecost=370,000wonFixedcost=500,000wonCanadadivisionVariablecost=CA$100Fixedcost=CA$280 Chinese income tax rate on China division's operating income 34% South Korean income tax rate on South Korea division's operating income 22% Canadian income tax rate on Canada division's operating income 35% Each desktop computer package is sold to retail outlets in Canada for $2,800. Assume that the current foreign exchange rates are as follows: 9yuan1,000won=CA$1=CA$1 Both the China and the South Korea divisions sell part of their production under a private label. The China division sells the comparable memory/keyboard package used in each Easy Keys desktop computer to a Chinese manufacturer for 3,600 yuan. The South Korea division sells the comparable desktop computer package to a South Korean distributor for 1,480,000 won