$22-30$ Multinational transfer pricing, global tax minimization. Express Grow Inc., based in Ankeny, lowa, sells high$-$end fertilizers. Express Grow has two divisions:

North Italy mining division, which mines potash in northern Italy

U$.$S$.$ processing division, which uses potash in manufacturing top$-$grade fertilizer

The processing division's yield is $50\%$ : It takes $2$ tons of raw potash to produce $1$ ton of top$-$grade fertilizer. Although all of the mining division's output of $8,000$ tons of potash is sent for processing in the United States, there is also an active market for potash in Italy. The foreign exchange rate is $0\mathrm{.}80$ Euro $=$$$1$ U$.$S$.$ The following information is known about the two divisions:

$\backslash$table$[[$E$,,$Home,Insert,Page Layout,Formulas,Data,Reniew$],[,,$A$,,,,$B$,$C$],[1,$North Italy Mining Division$],[2,$Variable cost per ton of raw potash,$56,$EURO$],[3,$Fixed cost per ton of raw potash,$96,$EURO$],[4,$Market price per ton of raw potash,$256,$EURO$],[5,$Tax rate,$30\%,],[6],[7,$U$.$S$.$ Processing Division$],[8,$Variable cost per ton of fertilizer,$43,$U$.$S$.$ dollars$],[9,$Fixed cost per ton of fertilizer,$115,$U$.$S$.$ dollars$],[10,$Market price per ton of fertilizer,$1,190,$U$.$S$.$ dollars$],[11,$Tax rate,$35\%,]]$