JUST NEED HELP ON #3!

I posted this question already and got the answer in the picture for number 3. I just don't really understand how it could be -60,000 for (a) as it doesn't include the savings in variable costs from Falcon not having to ship it in the calculation. An answer with explanation and clear calculation would be greatly appreciated!

22-32 International transfer pricing, taxes, goal congruence. Beacon, a division of Libra Corporation, is located in the United States. Its effective income tax rate is 30%. Another division of Libra, Falcon, is located in Canada, where the income tax rate is 40%. Falcon manufactures, among other things, an intermediate product for Beacon called XPS-2022. Falcon operates at capacity and makes 15,000 units of XPS-2022 for Beacon each period, at a variable cost of $28 per unit. Assume that there are no outside customers for XPS-2022. Because the XPS-2022 must be shipped from Canada to the United States, it costs Falcon an ad- ditional S4 per unit to ship the XPS-2022 to Beacon. There are no direct fixed costs for XPS-2022. Falcon also manufactures other products A product similar to XPS-2022 that Beacon could use as a substitute is available in the United States 1. What is the minimum and maximum transfer price that would be acceptable to Beacon and Falcon for 2. What transfer price would minimize income taxes for Libra Corporation as a whole? Would Beacon and for $38.50 per unit. Required XPS-2022, and why? Falcon want to be evaluated on operating income using this transfer price? 3. Suppose Libra uses the transfer price from requirement 2 and each division is evaluated on its own after-tax division operating income. Now suppose Falcon has an opportunity to sell 8,000 units of XPS- 2022 to an outside customer for S31 each. Falcon will not incur shipping costs because the customer is nearby and offers to pay for shipping. Assume that if Falcon accepts the special order, Beacon will have to buy 8,000 units of the substitute product in the United States at $38.50 per unit. a. Will accepting the special order maximize after-tax operating income for Libra Corporation as a whole? Will Beacon want Falcon to accept this special order? Why or why not? Will Falcon want to accept this special order? Explain. b. c. d. Suppose Libra Corporation wants to operate in a decentralized manner. What transfer price should Libra set for XPS-2022 so that each division acting in its own best interest takes actions with re- spect to the special order that are in the best interests of Libra Corporation as a whole? a) It the prs?ee ere d 324hen the net more + income to tha oo paid by the Beaten co tht the t py -for e the.sok g0o0 fd by e geaco oh theet pay to buy the yps-20. ara maher Preet .so as ()cussing 10% oould piolide o conhvibhon man per unir of S4 3,-$ 28) multiplid by-the -10hal uMiss.coo The shall eSde ofth he ealcon abter decentral hall 0ow get the Etha 3 from the ew f buing at a pectat ordev is 1roduced ant-the transfer Price ?s han