Exercise 11-7 (Algo) Transfer Pricing from the Viewpoint of the Entire Company (LO11-3) 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 5 190 115 Selling price per circuit board Variable cost per circuit board Number of circuit boardst Produced during the year Sold to outside customers Sold to Division 20,000 15,600 5,200 e 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 8 incurred $240 in additional variable cost per instrument and then sold the instruments for $610 each Required: 1. Calculate the net operating incomes eamed by Division A DIVISION B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 20,800 circuit boards. Next year, Division B wants to purchase 6,200 circuit boards from Division A rather than 5,200. (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 1,000 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. Required 1 Required 2 Calculate the net operating incomes eamed by Division A, Division B, and the company as a whole. Division Division Total Company Expense Added by the division Trier price paid Total expenses Net operating income g 5 05 $ 0 Required 23