Terabyte Inc. of France and R Ltd. of India are associated enterprises. R Ltd. imports 6,000 compressors for Air Conditioners from Terabyte Inc. at 6,700 per unit and these are sold to Refresh Cooling Solutions Ltd at a price of 10,000 per unit. R Ltd. had also imported similar products from Gold Inc. Poland and sold outside at a Gross Profit of 20% on Sales. Terabyte Inc. offered a quantity discount of 1,000 per unit. Gold Inc. could offer only 500 per unit as Quantity Discount. The freight and customs duty paid for imports from Gold Inc. Poland had cost R Ltd. 1,200 per piece. In respect of purchase from Terabyte Inc., R Ltd. had to pay * 200 only as freight charges. On the basis of aforesaid information, you are requested to choose correct options for the following: 1. What will be considered as arm's length price per unit? 2. State the amount of addition required to be made in the computation of R Ltd.?