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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 $ $ 180 115 Selling price per circuit board Variable cost per circuit board Number of circuit boards! Produced during the year Sold to outside customers Sold to Division 21.788 10,000 5,700 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 $610 each Required: 1. Calculate the net operating incomes eamed by Division A Division B, and the company as a whole. 2. Assume Division As manufacturing capacity is 21700 circuit boards, Next year, Division B wants to purchase 6,700 circuit boards from Division A rather than 5700. (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 1000 additional circuit boards to Division 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 21,700 circuit boards. Next year Division B wants to purchase 6,700 circuit boards from Division A rather than 5,700. (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 0 0 OS 5 0 0 0 $

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