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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 $191
Variable cost per circuit board $119
Number of circuit boards: Produced during the year
Sold to outside customers 14,999
Sold to Division B6,209
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 $260 in additional varlable cost per
Instrument and then sold the Instruments for $670 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 21,100 clrcult boards. Next year, Division B wants to purchase 7,200 clrcult boards
from Division A rather than 6,200.(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 1,000 additional circult boards to Division B 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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