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Requlred: Affillate X sells 10,400 units to Affillate Y per year. The marginal tax rates for X and Y are 20 percent and 30 percent,
Requlred: Affillate X sells 10,400 units to Affillate Y per year. The marginal tax rates for X and Y are 20 percent and 30 percent, respectlvely. The transfer price per unit is currently set at $1,000, but It can be set as high as $1,250. Calculate the Increase In annual after-tax profits If the higher transfer price of $1,250 per unit is used
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