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Current Attempt in Progress Bramble Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Bramble sells car stereos to Berna,
Current Attempt in Progress
Bramble Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Bramble sells car
stereos to Berna, as well as to other vehicle manufacturers and retail stores. The following information is available for Bramble's
standard unit: unit variable cost $ unit fixed cost $ and unit selling price to outside customer $ Berna currently purchases a
standard unit from an outside supplier for $ Because of quality concerns and to ensure a reliable supply, the top management of
Berna has ordered Bramble to provide units per year at a transfer price of $ per unit. Bramble is already operating at full
capacity. Bramble can avoid $ per unit of variable selling costs by selling the unit internally.
Answer each of the following questions.
a
Your answer is correct.
What is the minimum transfer price that Bramble should accept?
Minimum transfer price $
eTextbook and Media
b
Your answer is incorrect.
What is the potential loss to the corporation as a whole resulting from this forced transfer?
Potential loss $
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