Koopa Industries manufactures metal pipes at its plant in Bloomington, Indiana. The company has marketing divisions throughout the world. One of its divisions in Mushroom Kingdom (M.K.) imports 400,000 filters annually from Bloomington. The following information is available:

U.S. income tax rate	40%
Mushroom Kingdom income tax rate	45%
Mushroom Kingdom import duty	11%
Variable manufacturing cost per filter	$98
Full manufacturing cost per filter	$177
Selling price (net of marketing and distribution) in Mushroom Kingdom	$310

Suppose the authorities in the U.S. and M.K. only allow transfer prices between the full manufacturing cost of $177 and a market price of $235 based on comparable imports to the M.K. The M.K. import duty is charged based on the price at which the product is transferred into the M.K. Any import duty paid to the M.K. authorities is a deductible expense for calculating M.K. income taxes.

How much would after-tax operating income increase or decrease in the M.K. division if the company elects to set the transfer price at full manufacturing cost instead of market price? (round to the nearest dollar, enter increases as positive numbers and decreases as negative numbers)

***EXPLAIN STEP BY STEP, CORRECT ANSWER IS 14,163,600***

****last time I posted this question the chegg expert rounded up 2 million which is clearly not how you get to the solution, if you do not know, do NOT answer**