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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
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 5 $ 182 122 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 B 2e, tee 14,38 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 $260 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 20,600 circuit boards Next year, Division B wants to purchase 7300 circuit boards fron Division A rather than 6,300. (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? Complete this question by entering your answers in the tabs below. Requred! 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
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