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

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Sarasota Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Sarasota sells car stereos to Berna, as well as to other vehicle manufacturers and retail stores. The following information is available for Sarasota's standard unit: unit variable cost $39, unit fixed cost $22, and unit selling price to outside customer $88. Berna currently purchases a standard unit from an outside supplier for $83. Because of quality concerns and to ensure a reliable supply, the top management of Berna has ordered Sarasota to provide 216,000 units per year at a transfer price of $33 per unit. Sarasota is already operating at full capacity. Sarasota can avoid $3 per unit of variable selling costs by selling the unit internally. Answer each of the following questions. Your Answer Correct Answer * Your answer is incorrect. What is the minimum transfer price that Sarasota should accept? Minimum transfer price $ 91

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