Exercise 11A-2 Transfer Pricing from the Viewpoint of the Entire Company (LO11-5) Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A $ $ 180 120 Selling price per circuit board Variable cost per circuit board Number of circuit boards: Produced during the year Sold to outside customers Sold to Division B 21,300 14.900 6.400 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 $240 In additional variable cost per Instrument and then sold the Instruments for $640 each. Required: 1. Prepare Income statements for Division A Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 21,300 circuit boards. Next year. Division B wants to purchase 7.400 circuit boards from Division A rather than 6,400. (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 circuit boards to Division B or continue to sell them to outside customers? company as a wather than 6.400. (capacity is 21300 circune company as a whole Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare income statements for Division A. Division B, and the company as a whole. Division A Division B Total Company Sales Expenses: Added by the division Transfer price paid Total expenses 0 0 0 Net operating income $ 0 $ 0 $ 0 Required 1 Required 2 >