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$\text{'}$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.