Myra Canyon Inc. of Kelowna manufactures and sells specialized climbing gear. The Manufacturing Division is located in Brazil and transfers 80% of its output to the Assembly Division in the Mexico. The balance of the product is sold in the local market at 1500 real/unit The Mexico division sells 20% of its output in the local market at 15,000 pesos/unit with the balance shipped to Kelowna. The Kelowna operation packages the units and sells the final product at $1.600 Canadian per unit The following budget data are available: Brazil Mexico Canada Variable cost 460 reals 3,300 pesos $190 Fixed cost 560 reals 4,500 pesos $250 Exchange rates are $1 Canadian - 4 reals and 51 Canadian = 15 pesos Tax rates are 35% in Brazil, 20% in the Mexico and 30% in Canada. Income taxes are not included in the calculation of cost-based transfer prices. Assume that Myra Canyon Inc does not pay Canadian tax on amounts already taxed in foreign jurisdictions. Take each calculation to 2 decimal places Required The company has determined that it may transfer units at 225% of variable cost or at market and comply with all existing tax legislation which transfer pricing method should the company pursue? Support your recommendation with appropriate calculations 1 - TiB I/O & Step 1 - Translate to CAD