Question C1: 15 Marks Company CD International Ltd has two divisions, C and D. Division C operates in Country Max, and Division D operates in Country HiTax. Both countries use currency CU (Currency Unl I Division C produces semi-finished goods exclusively for Division D. Division D turns the semi- finished goods into finished goods and sells them to external customers for CU 45 each. Country LoTax has a corporate tax rate of 10%, Country HiTax has a corporate tax rate of 30%. Further information about Division C and D for the year 2020 is provided below: Division C Division D Units Produced 900,000 900,000 Variable Cost (per unit) CU 13 CU 14 Fixed Cost CU 500,000 CU 700,000 CD International uses an internally negotiated transfer price of CU 30 for their semi-finished goods. Draw up the profit or loss statements for Division C and Division D based on the information provided, and calculate the profit after tax for each division. Comment on the decision of CD International to set the transfer price at CU 30