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 $ $ 183 123 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 21,700 14,500 7,200 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 $240 In additional variable cost per Instrument and then sold the instruments for $670 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 8,200 circuit boards from Division A rather than 7200 (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? 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 Added by the division Transfer price paid Total expenses Net operating income Red Required 2 > Required 1 Requirea 2 Assume Division A's manufacturing capacity is 21,700 circuit boards. Next year, Division B wants to purchase 8,200 circuit boards from Division A rather than 7,200. (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 additional 1,000 circuit boards to Division B or continue to sell them to outside customers? Show less Continue to sell the additional 1,000 circuit boards to outside customers Sell the 1,000 additional circuit boards to Division B