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:

Selling price per circuit board	$ 190
Variable cost per circuit board	$ 119
Number of circuit boards:
Produced during the year	21,500
Sold to outside customers	14,900
Sold to Division B	6,600

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 $270 in additional variable cost per instrument and then sold the instruments for $660 each.

Required:

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

Assume Division As manufacturing capacity is 21,500 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?

\begin{tabular}{|c|c|c|c|} \hline & Division A & Division B & Total Company \\ \hline \multicolumn{4}{|l|}{ Sales } \\ \hline \multicolumn{4}{|l|}{ Expenses: } \\ \hline \multicolumn{4}{|l|}{ Added by the division } \\ \hline Transfer price paid & 0 & & \\ \hline Total expenses & 0 & 0 & 0 \\ \hline Net operating income & $ & $ & $ \\ \hline \end{tabular}