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Division A manufactures electronic circult boards that can be sold to Division B of the same company or to outside customers. Last year, the following

Division A manufactures electronic circult boards that can be sold to Division B of the same company or to outside customers. Last
year, the following activity occurred in Division A:
Sales to Division B were at the same price as sales to outside customers. The clrcult boards purchased by Division B were used In an
electronic instrument manufactured by that division (one board per instrument). Division B incurred $210 in additional varlable cost per
Instrument and then sold the Instruments for $690 each.
Required:
Calculate the net operating incomes earned by Division A, Division B, and the company as a whole.
Assume Division A's manufacturing capacity is 21,400 circult boards. Next year, Dlvislon B wants to purchase 7,800 circult boards
from Division A rather than 6,800.(Clrcult boards of this type are not avallable from outside sources.) From the standpolnt of the
company as a whole, should Division A sell the 1,000 additional circult boards to Division B or continue selling them to outside
customers?
Complete this question by entering your answers in the tabs below.
Calculate the net operating incomes earned by Division A, Division B, and the company as a whole.
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