Exercise 11-7 (Algo) Transfer Pricing from the Viewpoint of the Entire Company [LO11-3] Division A manufactures electronic circult boards. The boards can be sold elther 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 $270 in additional varlable cost per instrument and then sold the Instruments for $650 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 21,000 clrcult boards. Next year, Division B wants to purchase 7,600 circult boards from Division A rather than 6.600. (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 circuit boards to Division B or continue to sell 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