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Division A manufactures electronic circuit boards that can be sold to Division B of the same company or to outside customers. Last year, the following

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Division A manufactures electronic circuit boards that can be sold to Division B of the same company or to outside customers. Last
year, the following activity occurred in Division A:
Sales to Division B were at the same price as sales to outside customers. The circult boards purchased by Division B were used in an
electronic instrument manufactured by that division (one board per instrument). Division B incurred $210 in additional varlable cost per
Instrument and then sold the instruments for $610 each.
Required:
Calculate the net operating incomes earned by Division A, Division B, and the company as a whole.
Assume Division A's manufacturing capacity is 20,300 circult boards. Next year, Division B wants to purchase 5,500 circuit boards
from Division A rather than 4,500.(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 circult boards to Division B or continue selling them to outside
customers?
Complete this question by entering your answers in the tabs below.
Required 1
Calculate the net operating incomes earned by Division A, Division B, and the company as a whole.
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