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Premier Inc. manufactures printers in Athens, Texas. Its variable costs per printer is $ 3 0 0 and the full manufacturing cost is $ 5
Premier Inc. manufactures printers in Athens, Texas. Its variable costs per printer is $ and the full manufacturing cost is $ Premier ships printers to a division in Hawaii.The Hawaii division sells the printers to resorts in Hawaii at an average price of $Premier pays a tax on the US division's income. Hawaii levies a tax on income in Hawaii. Both tax authorities only allow transfer prices that are between the full manufacturing cost per unit and a market price of $ based on comparable imports into Hawaii. What transfer price should Premier select to minimize the company's tax liability?
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