Exercise 11-7 (Algo) Transfer Pricing from the Viewpoint of the Entire Company [LO11-3] 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 circuit boards purchased by Division B were used in an electronic instrument manufactured by that division (one board per instrument). Division B incurred $230 in additional variable cost per instrument and then sold the instruments for $670 each. Required: 1 Calculate the net operating incomes earned by Division A, Division B, and the company as a whole. 2 Assume Division As manufacturing capacity is 20,100 circuit boards. Next year, Division B wants to purchase 6,700 circuit boards from Diviston A rather than 5,700 (Circult boards of this type are not available from outside sources.) From the standpaint 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. company as a whole, should Division A sell the 1,000 additional circuit boards to Division B or continue selling them to outside customers? Complete this question by entering your answers in the tabs below. Assume Division A's manufacturing capacity is 20,100 circuit boards. Next year, Division B wants to purchase 6,700 circuit boards from Division A rather than 5,700. (Circuit boards of this type are not available from outside sources.) From the standpoint of the compary as a whole, should Division A sell the additional 1,000 circuit boards to Division 8 or continue selling them to outside customers? Show less A Continue to sell the additional 1,000 circult boards to outside customers. Sell the 1,000 additional circuit boards to Division B