Hi, Could you please assist me with calculating the net profit after tax per unit when the transfer price is based on total cost plus mark-up 30% assuming all units produced are purchased solely by the affiliate in Chile?

I appreciate your help!

The company P operates a manufacturing facility in Australia:

1. The entity sells its products to its affiliate in Chile. 2. The entity incurs manufacturing costs of $110 per unit which are based on operations at full capacity of 20,000 units. 3. Operating expenses are $15 per unit in both countries. 4. Costs to transport the goods to the affiliate in Chile are $30 per unit and is paid by Penrith Limited in Australia. 5. The corporate tax rate in Australia is 25%, and in Chile the corporate tax rate is 30%. 6. Chile imposes a duty of 10% on imported goods. 7. The affiliate in Chile sells each unit for $300. 8. Import duties are deductible for income tax purposes in Chile