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 Variable cost per circuit board $192 $130 Number of circuit boards Produced during the year Sold to outside customers 20,300 14,300 6,000 Sold to Division B 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 $300 in additional variable cost per instrument and then sold the instruments for $690 each Required 1. Prepare income statements for 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 2. Assume that Division A's manufacturing capacity is 20,300 circuit boards. Next year, Division B wants to purchase 7,000 circuit boards from Division A rather than 6,000. (Circuit boards of this type are not whole? available from outside sources.) What should Division A do from the standpoint of the company as a O Sell the 1,000 additional circuit boards to Division B O Continue to sell the circuit boards to outside customers