Determine Optimal Transfer Price
Given data
Malaykey Data
Production cost	$120.00
Transportion cost	$10.00
Wholesale price to Targetmart	$200.00
Wholesale price to Music Superstore (transfer price)	?
Other Malaysian Manufacturers' Sales of Keyboards to United States
Markup on total cost	60%
Targetmart Data
Markup on total cost	50%
Retail price to customers	$360.00
Music Superstore Data
Retail price to customers	$342.00
Tax Rates and Import Duties
Malaysia corporate income tax rate	30%
Malaysia non-treaty withholding tax rate on dividends	25%
U.S. corporate income tax rate	21%
U.S. ad valorem import duty	20%
U.S.-Malaysia tax treaty withholding tax rate on dividends	5%

(b) Resale Price Method
Music Superstore retail price to customers		$342.00
less: reasonable retailer markup on total cost	50%		PS.IT IS NOT 342*50% or 120+10*50% or 200*50% I have tried all these already.
less: U.S. import duty	20%		PS. IT IS NOT 342*20% or 120+10*20% or 200*20% i have tried all these already.
Transfer price			=