$ 112 Division A manufactures electronic circuit boards. The boards can be sold either to Division of the same company or to outside customers. Last year, the following activity occurred in Division A: Selling price per circuit board $ 185 Variable cost per circuit board Number of circuit boards: Produced during the year 20,800 Sold to outside customers 14,200 sold to Division D 6,600 Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in an electronic Instrument manufactured by that division (one board per instrument), Division B incurred $230 In additional variable cost per Instrument and then sold the instruments for $630 each Required: 1. Calculate the net operating incomes earned by Division A. Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 20,800 circuit boards. Next year, Division B wants to purchase 7,600 circuit boards from Division A rather than 6,600. (Circuit boards of this type are not available from outside sources.) From the standpoint of the company as a whole should Division A sell the 1,000 additional circuit boards to Division B or continue to sell them to outside customers? Required 1 Required 2 Calculate the net operating incomes earned by Division A, Division B, and the company as a whole. Division A Division B Total Company Sales Expenses: Added by the division Transfer price paid Total expenses Net operating income