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Grouper Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Grouper sells car stereos to Berna, as well as to

image text in transcribed Grouper Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Grouper sells car stereos to Berna, as well as to other vehicle manufacturers and retail stores. The following information is available for Grouper's standard unit: unit variable cost $36, unit fixed cost $22, and unit selling price to outside customer $85. Berna currently purchases a standard unit from an outside supplier for $80. Because of quality concerns and to ensure a reliable supply, the top management of Berna has ordered Grouper to provide 184,000 units per year at a transfer price of $34 per unit. Grouper is already operating at full capacity. Grouper can avoid $3 per unit of variable selling costs by selling the unit internally. Answer each of the following questions. (a) What is the minimum transfer price that Grouper should accept? Minimum transfer price $

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