The Boot Division of the Alberta company is located in a country with a 10% corporate tax and the Sole Division of the Alberta company is located in a country with a 30% tax rate.

What can you conclude after analyzing the data in the image? There a company's after-tax contribution margins are compared using a transfer price per unit of $ 18.00 versus a transfer price per unit of $ 11.00

$18 Transfer Price Boot Division Sole Division Selling price of hiking boots $90.00 Selling price of sole $18.00 Variable cost of manufacturing 35.00 Variable cost per sole 11.00 boot (not including sole) Cost of sole purchased internally 18.00 Before-tax contribution margin 37.00 Before-tax contribution margin 7.00 Tax at 10% 3.70 Tax at 30% 2.10 After-tax contribution margin $33.30 After-tax contribution margin 4.90 Before-tax total contribution margin per unit to company - $37 + $7 - $44 After-tax total contribution margin per unit to company - $33.30 + $4.90 -$38.20 $1 1 Transfer Price Boot Division Sole Division Selling price of hiking boots $90.00 Selling price of sole $11.00 Variable cost of manufacturing 35.00 Variable cost per sole 11.00 boot (not including sole) Cost of sole purchased internally 11.00 Before-tax contribution margin 44.00 Before-tax contribution margin 0.00 Tax at 10% 4.40 Tax at 30% 0.00 After-tax contribution margin $39.60 After-tax contribution margin 0.00 Before-tax total contribution margin per unit to company - $44 + $0 - $44 After-tax total contribution margin per unit to company = $39.60 + $0 -$39.60