2 Exercise 11A-2 Transfer Pricing from the Viewpoint of the Entire Company [LO11-5) 10 points Division A manufactures electronic circult boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A Selling price per circuit board 179 Variable cost per crcuit board 110 eBook Number of circuit boards Produced during the year Sold to outside custoners Sold to Division B 21,500 14,600 6,900 Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division 8 were used in an electronic instrument manufactured by that division (one board per instrument). Division B incurred $240 in additional variable cost per instrument and then sold the instruments for $650 each Print Required: 1. Prepare income statements for Division A, Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 21,500 circuit boards Next year, Division B wants to purchase 7,900 circuit boards from Division A rather than 6,900. (Circuilt boards of this type are not available from outside sources.) From the standpoint of the company as a whole, should Division A sell the additional 1,000 circuit boards to Division B or continue to sell them to outside customers? References