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

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Riverbed Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Riverbed sells car stereos to Berna, as well as to other vehicle manufacturers and retail stores. The following information is available for Riverbed's standard unit: unit variable cost $38, unit fixed cost $23, and unit selling price to outside customer $87. Berna currently purchases a standard unit from an outside supplier for $82. Because of quality concerns and to ensure a reliable supply, the top management of Berna has ordered Riverbed to provide 212,000 nits per year at a transfer price of $36 per unit. Riverbed is already operating at full capacity. Riverbed can avoid $3 per unit of variable selling costs by selling the unit internally. Answer each of the following questions. What is the potential loss to the corporation as a whole resulting from this forced transfer

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