RSE, Inc. operates divisions in several countries. Moore Division operates in Country A while Bowton Division operates in Country B. Bowton wants to buy a component from Moore for $100 while Moore wants the price to be $150. Variable cost to Moore is $40. Bowton incurs an additional $50 cost per unit and sells the finished product for $250.

The tax rate is 42% in Country A and is 46% in Country B. Additionally, Country B levies a duty of 12% of the price of any goods imported into it. Bowton would pay the duty. The duty is tax deductible.

Determine which transfer price would be better from the standpoint of RSE, Inc.