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

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Division A manufactures electronic circuit boards. The boards can be sold either to Division of the same company or to outside customers. Last year, the following activity occurred in Division A: Selling price per circuit board $ 180 Variable cost per circuit board $ 129 Number of circuit boards: Produced during the year 21,900 Sold to outside customers 15,400 Sold to Division B 6,500 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 $220 in additional variable cost per instrument and then sold the instruments for $690 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 7,500 circult boards from Division A rather than 6,500. (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 1,000 additional circuit boards to Division B or continue to sell them to outside customers

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