Question 1. USM, a US manufacturing corporation, sells electrical gizmos to foreign distribution subsidiaries and to unrelated foreign distributors. The terms of sale are substantially the same except that the price charged to subsidiaries is a delivered price, while the price charged to unrelated distributors is FOB USM's factory. Is the comparable sales method applicable in this case?
Question 2. Would your answer in Problem 1 change if the sole difference was that USM affixes its valuable trademark to electrical gizmos sold to its subsidiaries, but not to unrelated distributors?
Question 3. Would your answer in Problem 1 change if the sole difference was that subsidiaries resold to European customers while the unrelated distributors sold in Asia?