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:Variable cost per circuit board $ $124$

Number of circuit boards:Sold to outside customers $14,800$

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

$$290$ in additional variable cost per instrument and then sold the instruments for $$620$ each.

Required:

Calculate the net operating incomes earned by Division A$,$ Division B$,$ and the company as a whole.

Assume Division A$\text{'}$s manufacturing capacity is $21,400$ 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 selling them to outside customers? 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. Assume Division A$\text{'}$s manufacturing capacity is $21,400$ 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 additional $1,000$ circuit boards to Division B or continue

selling them to outside customers?

Continue to sell the additional $1,000$ circuit boards to outside customers.

Sell the $1,000$ additional circuit boards to Division B$.$