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 $$190$

Variable cost per circuit board $$126$

Number of circuit boards:

Produced during the year $21,700$

Sold to outside customers $,14,700$

Sold $to$ Division $B7,000$

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 $$280$ in additional variable cost per

instrument and then sold the instruments for $$650$ each.

Required:

Calculate the net operating incomes earned by Division $A,$ Division $B,$ and the company as a whole.

Assume Division A$\text{'}$s manufacturing capacity is $21,700$ circuit boards. Next year, Division B wants to purchase $8,000$ circuit boards

from Division A rather than $7,000.($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?