The Questron company manufactures telecommunications equipment at its plant in Pennsylvania. The company has marketing divisions throughout the world. A Questron marketing division located in Germany imports 100,000 broadband routers from the manufacturing division in the US. The following information is available: Suppose that the US and German tax authorities only allow transfer prices that are between the full manufacturing cost per unit of $400 and a market price of $475, based on comparable imports into Germany. The German import duty is charged on the price at which the product is transferred into Germany. Import duty is a deductible expense for calculating German income taxes. 1. Calculate the net income earned by the US and German divisions from transferring 100,000 routers at a) full manufacturing cost per unit and b) at market price of comparable imports. 2. Which transfer price should the Questron company select to minimize its income taxes? Remember the transfer price must be between $400 and $475