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 8 were used 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 $610 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 21,900 circuit boards. Next year, Division B wants to purchase 7,000 circuit boards from Division A rather than 6,000. (Circuit boards of this type are not avaliable from outside sources.) From the standpoint of the compary as a whole, should Division A sell the 1,000 additional circuit boards to Division B or continue selling them to outside. customers? 1. Caiculate the net operating incornes earned by Division A, Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 21,900 circuit boords. Next year, Oivision B wants to purchase 7,000 circuit boards from Division A rather than 6.000 . (Circuit boards of this type are not avalfable 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. Calculate the net operating incomes earned by Division A, Division B, and the company as a whole. 1. Calculate the net operating incomes earned by Division A, Division 8 , and the company as a whole. 2. Assume Division A's manufacturing capacity is 21,900 circuit boards. Next year, Division B wants to purchase 7,000 circuit boards from Division A rather than 6,000. (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. Assume Oivision As manufacturing capacity is 21,900 circuit boards. Next year, Division B wants to purchase 7,000 circuit boards from Division A rather than 6,000. (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 crcuit boards to Division B of continue selling them to outside customers? Show less. Continue to sel the additional 1,000 circuit boards to outside customers: Sell the 1,000 additional circult boards to Division B
