Question 2 10 points Molotov Cocktails, a subsidiary of a multinational Beverages Company produces a very exclusive Vodka in Rumania at a full cost price of 50 euro's a carton of 12 bottles. The variable cost are 30% of the full cost price. They export these Bottles to their sister company in the UK. In the UK there is a 15% import duty on these products. The Corporate income tax rate in the UK is 45% and in Rumania it is 24%. 1. Which Cost Price (Full or Variable regardless of any Duty Tax implications) for a full carton box should Molotov take as a basis for its Transfer Price from Rumania to the UK to maximize overall profitability? (2 points) 2. What is the net savings (per carton box) in taxation, using a strategy based on maximizing overall profitability? (4 points) 3. At which import duty percentage would the net savings become zero, thus making it indifferent which strategy to use? (4 points)