Mars is a US MNC with affiliates and subsidiaries located internationally. Mars' Australian subsidiary sells 1,633 tons of sugar cane extract each year to the New Zealand affiliate at a transfer price of AUD3,400 per ton. Mars believes that the transfer price per ton of sugar cane extract can be set at any level between AUD1,620 and AUD3,740 without attracting attention from each country's tax authorities. The Australian and New Zealand marginal tax rates on corporate income are 26% and 15.55%, respectively. Given this information, which of the following is the maximum amount that Mars can save each year by changing their current transfer price from AUD3,400 per ton to the optimal transfer price? O a. AUD303,754.33 O b. AUD58,020.49 Oc. AUD235,734.33 O d. -AUD225,412.77, so it is better for them not to change the transfer price. O e. None of the options in this question are correct.

Mars is i US MNC with afficiates and subsidiaries located internationally, Mars' Austrasan subsidiary sells 1,633 tons of isugar cane extract each year to the New Zealand atfiliate at a trangfer ptice of AuD3,400 per fon. Mars bel eves that the transfer price per fon of sugar cane extract can be set at any fevel between AuDo1,620 and AUD3, 140 without attracting attehtion from each country's tax authorities. The Austrolian and New Zealend marginal toxrotes on corporate income are 26\$ and 15,55%, respectively. price? (. AUO203,754 39 b. Au0se,020 49 c. AU0235,7.4.33 di Mu0225412.77, so if is betier for them not to change the Jransfer price e. Npre of the options in mis question are correct