【題組】(4) Now suppose Fridge Division is located at France and is subject to a 40% income taxrate, whereas Compressor Division is located at U.S. and its income tax rate is only30%. Furthermore, there is a 10% import duty computed on the transfer price that willbe paid by the Fridge Division and is deductible when computing Fridge Division’staxable income. Tax laws of the two countries allow transfer prices to be set at U.S.manufacturing cost or the selling prices of comparable imports in France ($70).Given the tax consideration, what is the internal transfer price that would guarantee theresult of division managers’ decision be congruent with the best interest of the Companyas a whole? Show your calculation and explain.