1st part of question

Division A manufactures electronic circuit boards. The boards can be sold either to Division B ofthe same company or to outside customers. Last year, the following activity occurred in Division A: Selling price per circuit board 5 175 Variable cost per circuit board 5 121 Number of circuit boards: Produced during the year 28,903 Sold to outside customers 15,666 Sold to Division B 5,360 Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division El were used in an electronic instrument manufactured by that division {one board per instrument]. Division B incurred $290 in additional variable cost per instrument and then sold the instruments for $600 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 20,900 circuit boards. Next year, Division B wants to purchase 6,300 circuit boards from Division A ratherthan 5,300. {Circuit boards ofthis type are not available from outside sources.) From the standpoint ofthe 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? Complete this question by entering your answers in the labs below- Required 1 Required 2 Calculate the net operating incomes earned by Division A, Division B, and the company as a whole. Expenses: Added by the division Transfer price paid Total expenses Net operating income