Full cost V cost Sheet3 Padre Inc., a U.S. company, has two subsidiaries, Hijo and Amery. Hijo is located in Brazil and Amery in the U.S. The tax rate is 17% in Brazil and 21% in the U.S. The full cost per unit is $5 for Hijo. Amery sells the units in the U.S. at $15 per unit. Ignore any other costs. Option 1: Hijo transfers 100 units of coca to Amery at a negotiated transfer price of $10 per unit. Option 2: Padre intervenes to set the transfer price at $13.per unit. Which TP produces the higher net profit? Option 1 Hijo Amery Padre Sales COGS Gross profit Income tax effect After-tax profit Option 2 Hijo Amery Padre Sales COGS Gross profit Income tax effect After-tax profit Full cost V cost Sheet3 Padre Inc., a U.S. company, has two subsidiaries, Hijo and Amery. Hijo is located in Brazil and Amery in the U.S. The tax rate is 17% in Brazil and 21% in the U.S. Amery sells the units in the U.S. at $15 per unit. Ignore any other costs. Assume, instead of full cost per unit is $5, Hijo's variable cost per unit is $5 and fixed cost per unit is $3. Amery's per unit fixed cost is $4. Do your calculation to show the new results for option 1 and option 2. Option 1: Hijo transfers 100 units of coca to Amery at a negotiated transfer price of $10 per unit. Option 2: Padre intervenes to set the transfer price at $13 per unit