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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 $ in additional varlable cost per
Instrument and then sold the Instruments for $ each.
Required:
Calculate the net operating incomes earned by Division A Division B and the company as a whole.
Assume Division As manufacturing capacity is circult boards. Next year, Dlvislon B wants to purchase circult boards
from Division A rather than 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 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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