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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 $ 178 Variable cont per circuit board $ 111 Number of circuit boards Produced during the year 20,900 sold to outside customers 15,300 Sold to Division 1 5,600 Sales to Division B were at the same price as sales to outside customers. The circult boards purchased by Division B were used in an electronic instrument manufactured by that division (one board per instrument). Division Bincurred $210 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 20,900 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 1,000 additional circult boards to Division B or continue to sell them to outside customers? 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 20,900 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 1,000 additional circuit boards to Division B or continue to sell them to outside customers? 2:00 Complete this question by entering your answers in the tabs below. OK Required 1 Required 2 ht nt prices Calculate the net operating incomes earned by Division A, Division B, and the company as a whole. Division A Division 8 Total Company Sales Expenses Added by the division Transfer price paid Total expenses 0 Net operating income $ 0$ $ 0 0 0 0 Required Required 2 >

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