Exercise 11.7 (Static) Transfer Pricing from the Viewpolnt of the Entlre Compeny [LO11.3] Dision A manufactures electronic circuit boards. The boards can be sold elther to Divilon B of the same company or to outside customers. Last year, the following activity occurred in Dision A. Sales to Devsion B were at the same price as sales to ounside customers. The circutt boards purchased by Division B were used in an electronic instrument manufactured by that division (one board per instrument). DMision B incurred $100 in additonal variable cost per instrument and then sold the instruments for $300 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 20,000 circuit boards. Next yoar, DMsion B wants to purchase 5,000 circuit boards from Division A rather than 4,000 . (Clircult boards of this type are not avallable from outside sources.) From the standpoint of the company as a whole, should Division A sell the 1,000 additional circut boards to Division B or continue to sell them to cutside 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. Complete this question by entering your answers in the tabs below. Assume Division A's manufacturing capacity is 20,000 circuit boards. Nect year, Division B wants to purchase 5,000 circuit: boards from Division A rather than 4,000 . (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 additional 1,000 bircuit boards to Division B or continue to sell them to outside customers