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    Maximizing Transfer Price

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    When dealing with transfer pricing between different countries with different tax rates and different willingness to pay, how do you determine the optimum transfer price of a product from the corporation's point of view? Example:
    A company has a product that costs $525,000. A division in the U.S., normally can sell at $650,000, but they have had a client back out of a deal and so have a product on hand.
    Europe will pay up to $600,000 and expects to sell at $650,000
    Asia will pay up to $575,000 and expects to sell at $675,000.
    - From the point of view of the corporation, what would be the profit maximizing transfer price?
    - Would the U.S. division want a different deal?

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    This solution provides answers for maximizing transfer price in Excel.