Ayayai Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles....

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Ayayai Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Ayayai sells car stereos to Berna, as well as to other vehicle manufacturers and retail stores. The following information is available for Ayayai's standard unit: unit variable cost \$37, unit fixed cost $23, and unit selling price to outside customer $86. Berna currently purchases a standard unit from an outside supplier for $81. Because of quality concerns and to ensure a reliable supply, the top management of Berna has ordered Ayayai to provide 248,000 units per year at a transfer price of $32 per unit. Ayayai is already operating at full capacity. Ayayal 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 Ayayai should accept? - Your answer is incorrect. What is the potential loss to the corporation as a whole resulting from this forced transfer? Potential loss Attempts: 2 of 3 used

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