Use the following information to answer questions 24-29

Wilson Corp has two divisions. The Mining Division mines raw iron, which is then transferred to the Metals Division. The raw iron is refined by the Metals Division and is sold to customers at a price of $420 per ton. The Mining Division is currently required by Wilson to transfer its total yearly output of 300,000 tons of iron to the Metals Division. The Mining Division is located in the USA with and effective income tax rate of 20%. The Metals Division is located in Singapore with a 30% effective corporate income tax rate. Additionally, Singapore charges an import tariff on U.S. raw iron imports of 15%. This tariff is tax deductible in Singapore.

The full cost of raw iron from the Mining Division is $120 per ton, and an additional $104 per ton of cost is added in refining the iron in the Metals Division. Assume the tax authorities restrict transfer prices to a minimum of the full cost and a maximum of the market price estimated to be $190.

24. What is the total combined after-tax operating income for the two divisions when the transfer price is set at full cost?

Selected Answer:	A. $37,380,000