First, for Column A Given that 1) US unit cost to make the phone is $100 as shown; and 2) You set the phone selling price in Asia as $250 as shown. The transfer price for column A is The US Corporate taxable income is The Asia Cost of Goods Sold is The US Gross income is The Profit in the US is The Asia Corporate taxable income is The Total Worldwide Profit is The Profit in Asia is Then, for Column B Given the same assumptions as above. Enter the number (1.1 or 1.5) Then calculate the rows in Col. B based on that choice. The transfer price for column B is The US Corporate taxable income is The Asia Cost of Goods Sold is The Profit in Asia is Assume US unit cost = $100 In Cesim US -> Asia cell Transfer price will increase worldwide profits compared to your answer in column A. The US Gross income is ; The Profit in the US is The Asia Corporate taxable income is The Total Worldwide Profit is A B 1.25 1.1 or 1.5 US gross income US costs per unit 100 100 US corp taxable income Tax @ 35% Profit in US Asia income/sales 250 250 Asia Cost of goods sold Asia corporate taxable income Asia Tax @ 15% Profit in Asia Total Worldwide Profit