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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 circuit boards purchased by Division B were 4 sed in an electronic instrument manufactured by that division (one board per instrument). Division B incurred $280 in additional variable cost per instrument and then sold the instruments for $700 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 6,900 circuit boards from Division A rather than 5,900. (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? Assume Division A's manufacturing capacity is 21,300 circuit boards. Next year, Division B wants to purchase 6,900 circuit boards from Division A rather than 5,900. (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? Calculate the net operating incomes earned by Division A, Division B, and the company as a whole

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