MTG Group Ltd is involved in fish processing and supply in various countries. Currently, the group have subsidiaries in Madagascar, Mauritius and Reunion Islands. The fish are cached in the Indian Ocean, that is mainly in these three countries territory and accordance with the mutual agreement between these countries company can process the fish in any of these countries but will have to supply at least $50\%$ of the processed fish to these three Island for their consumption. The company is expected to produce $1,200,000$ process fish can per year. Production and exportation cost will be as listed below: Madagascar Fishing cost USD $5$ per unit produce Labour cost USD $7$ per unit produce Exportation cost USD $25,000$ per $1,000$ unit Local authority cost USD $5,000$ per year Management fee service fees USD $50,000$ per year Royalties payable to MTG is $2\%$ of revenue Mauritius Fishing cost USD $5$ per unit produce Labour cost USD $10$ per unit produce Exportation cost USD $20,000$ per $1,000$ unit Local authority cost USD $7,000$ per year Management fee service fees USD $50,000$ per year Royalties payable to MTG is $2\%$ of revenue Reunion Fishing cost USD $5$ per unit produce Labour cost USD $15$ per unit produce Exportation cost USD $10,000$ per $1,000$ unit Local authority cost USD $15,000$ per year Management fee service fees USD $50,000$ per year Royalties payable to MTG is $2\%$ of revenue The tax law in these countries are as follows: Madagascar tax law: Corporate tax is $30\%$ Withholding tax dividend is $15\%$ The capital gain tax is $15\%$ Royalties withholding tax $20\%$ Management service tax $5\%$ Mauritius tax law: Corporate tax is $15\%$ Withholding tax is $10\%$ The capital gain tax is $5\%$ Royalties withholding tax $5\%$ Management service tax $0\%$ French tax law: Corporate tax is $40\%$ Withholding tax is $10\%$ The capital gain tax is $5\%$ Royalties withholding tax $7\%$ Management service tax $5\%$ The selling price of the processed fish is USD $50$ in each of the three$-$country. However, the price is higher for those sold outside these three islands. REQUIRED $($a$)$ Base on the information provided above, you have to recommend whether the company should set up only one processing unit or one unit in each country. $(30$ Marks$)($b$)$ Explain the circumstances when the company could have charge different prices to each of the three countries.