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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
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:Division A manufactures electronic clrcult 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 $
Variable cost per circuit board $
Number of circuit boards: Produced during the year
Sold to outside customers
Sold Division
Sales to Division B were at the same price as sales to outside customers. The clrcult boards purchased by Division B were used In an
electronic instrument manufactured by that division one board per instrument Division B incurred $ in additional varlable cost per
Instrument and then sold the Instruments for $ 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 clrcult boards. Next year, Division B wants to purchase clrcult boards
from Division A rather than Clrcult boards of this type are not avallable from outside sources. From the standpoint of the
company as a whole, should Division A sell the additional circult boards to Division or contlinue selling them to outside
customers?
Complete this question by entering your answers in the tabs below.
Calculate the net operating incomes earned by Division A Division B and the company as a whole.
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