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Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year,

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Division A manufactures electronic circuit boards. The boards can be sold either 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 $ 116 Number of circuit boards: Produced during the year 20,780 Sold to outside customers 15,200 Sold to Division B 5,500 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 $290 In additional variable cost per Instrument and then sold the instruments for $620 each. Required: 1. Prepare Income statements for Division A. Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 20,700 circuit boards. Next year. Division B wants to purchase 6,500 circuit boards from Division A rather than 5,500. (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 to sell them to outside customers? Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 2 Prepare income statements for Division A, Division B, and the company as a whole. Division Division Total A B Company Sales Expenses: Added by the division Transfer price paid Total 0 0 expenses Net operating S S 0 S income 0 0 0 Required Required 2 >

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