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Listen Company Centennial has two divisions. The forcasted details of operations is shown below for the upcoming month Division A Canada 40% 90 ? Division

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Listen Company Centennial has two divisions. The forcasted details of operations is shown below for the upcoming month Division A Canada 40% 90 ? Division B Ireland 20% 60 Location Tax rates Variable costs per unit Transfer price internal) Selling price Fixed costs Units transferred internally (no ending inventory for both divisions) 400 20,000 75,000 1,000 Required: a) What transfer price should be sset for the company to minimize its total income taxes? Show your calculations and explain the reason. 2 marks b) If the company desires to minimize its total income taxes, calculate the amount of tax liability in each division 6 marks c) What impacts on the behaviours or attitudes might occur within divisions if the company adopts this transfer price 2 marks

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