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Can you please show me what I did wrong for total company sales? I thought I just had to add Div A sales and Div
Can you please show me what I did wrong for total company sales? I thought I just had to add Div A sales and Div B.
Division A manufactures electronic circuit 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: $ $ 183 111 Selling price per circuit board Variable cost per circuit board Number of circuit boards: Produced during the year Sold to outside customers Sold to Division B 21,300 14,600 6,700 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 $670 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 21,300 circuit boards. Next year, Division B wants to purchase 7,700 circuit boards from Division A rather than 6,700. (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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the net operating incomes earned by Division A, Division B, and the company as a whole. Division Division B Total Company $ 4,489,000$ 8,386,900 Sales 3,897,900 Expenses: Added by the 2,364,300 1,541,000 3,905,300 division 0 1,226,100 Transfer price paid Total expenses Net operating income 2,364,300 3,905,300 2,767,100 $ 1,721,900 $ 4,481,600 1,533.600Step by Step Solution
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