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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 $ 184 Variable cost per circuit board $ 112 Number of circuit boards: Produced during the year 20,888 Sold to outside customers 15,200 sold to Division B 5,600 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 $300 In additional variable cost per Instrument and then sold the Instruments for $630 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 20,800 circuit boards. Next year, Division B wants to purchase 6,600 circult boards from Division A rather than 5,600. (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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the net operating incomes earned by Division A, Division B, and the company as a whole. Division A Division B Total Company Sales Expenses: Added by the division Transfer price paid Total expenses Net operating income Required 1 Required 2 Assume Division A's manufacturing capacity is 20,800 circuit boards. Next year, Division B wants to purchase 6,600 circuit boards from Division A rather than 5,600. (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? Show less Continue to sell the additional 1,000 circuit boards to outside customers. Sell the 1,000 additional circuit boards to Division B.

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