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Division A manufactures electronic circuit boards. The boards can be sold either to Division B of tie 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 tie same company or to outside customers. Last year, the following activity occurred in Division At $ $ 125 90 Selling price per circuit board Variable cont per circuit board Number of circuit boards: Produced during the year Sold to outside customers sold to Division 2 ook 20,000 16,000 4,000 mos Sales to Livision 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 $100 in additional variable cost per instrument and then sold the instruments for $300 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 20,000 circuit boards. Next year, Division B wants to purchase 5,000 circuit boards frorn Division A rather than 4,000. (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? 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 Division B Total Company 2. Assume Division A's manufacturing capacity is 20,000 circuit boards. Next y from Division A rather than 4,000. (Circuit boards of this type are not available company as a whole, should Division A sell the 1,000 additional circuit boards customers? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculdte the net operating incomes earned by Division A, Division B, and the com Division A Division B Total Company Sales Expenses: Added by the division Transfer price paid Total expenses Net operating income 0 0 0 0 $ $ 0 $ 0

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