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Please look at the attached screenshot for the question A French multinational pharmaceutical company headquartered in Paris sells 5,000 drugs monthly to its Australian subsidiary

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A French multinational pharmaceutical company headquartered in Paris sells 5,000 drugs monthly to its Australian subsidiary at a transfer price of $19,000 per unit. Suppose that the transfer price can be set at any level between $16,000 to $24,000. The French and Australian marginal tax rates on corporate income are assumed to equal 32% and 25.6%, respectively. At what unit transfer price will corporate taxes paid be minimized? (Please round your answer to the nearest integer) Answer: 1

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