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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: $ $ 175 125 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 3 21,700 14,400 7,300 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 $660 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 21700 circuit boards. Next year, Division B wants to purchase 8,300 circuit boards from Division A rather than 7,300 (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 B or continue to sell them to outside customers

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