The Vision Company manufactures telecommunications equipment at its plant in Scranton, Pennsylvania. The company has marketing divisions throughout the world. A Vision marketing division in Hamburg, Germany, imports 135,000 broadband routers from the United States. The information about the router is available in the accompanying table. (Click the icon for the router information.) Suppose the United States and German tax authorities only allow transfer prices that are between the full manufacturing cost per unit of $430 and a market price of $505, based on comparable imports into Germany. The German import duty is charged on the price at which the product is transferred into Germany. Any import duty paid to the German authorities is a deductible expense for calculating German income taxes. Router information Required 1. Calculate the after-tax operating income earned by the United States and German divisions from transferring 135,000 broadband routers (a) at full manufacturing cost per unit and (b) at market price of comparable imports. (Income taxes are not included in the computation of the cost-based transfer prices.) 2. Which transfer price should the Vision Company select to minimize the total of company import duties and income taxes? Remember that the transfer price must be between the full manufacturing cost per unit of $430 and the market price of $505 of comparable imports into Germany. Explain your reasoning