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

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Monty Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Monty sells car stereos to Berna, as well as to other vehicle manufacturers and retail stores. The following information is available for Monty'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 Monty to provide 196,000 units per year at a transfer price of $33 per unit. Monty is already operating at full capacity. Monty can avoid $3 per unit of variable selling costs by selling the unit internally. Answer each of the following questions. (a) (b) Your answer is incorrect. What is the potential loss to the corporation as a whole resulting from this forced transfer

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