Exercise 15-30 (Algo) International Transfer Pricing and Taxes (LO 15-2, 4) MBS is organized into two divisions - Fabrication and Matketing. Fabrication produces a product that can be sold immediately or transferred to Marketing for customization and then sold. Marketing only buys from Fabrication for quality control reasons. Fabrication currently selis 28,000 units annually at a price of $200 per unit to outside customers. It sells an additional 18.000 units to Marketing. The unit varisble cost in Fabrication is $100 and annual fixed costs are $1.4 million. Fabrication is located in a country with a 30 percent tax rate. Marketing can seli customized units for $480 each, In addition to what it pays Fabrication, the variable costs in Marketing are $90 per unit. Annuog fixed costs in Marketing are $2.8 million. Marketing is located in a country with a 20 percent tax rate. Required: a. Suppose Fabrication would have excess capacity even with the demand from Marketing. Ignoring tax implications. what transfer price would you recommend MBS adopt? b. What would be the total taxes MBS paid under the policy you recommend in requirement (a)? (Enter your answers in dollars and not in militions of dollars.) c. Suppose Fabrication has no excess capacity, Ignoring tax implications, what transfer price would you recommend MBS bdopt? d. What would be the total taxes MBS pald under the policy you recommend in requitement (C)? (Enter your answers in doliars and not in millions of dollars.)