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Exercise 11A-3 Transfer Pricing from the Viewpoint of the Entire Company [LO6) Division A manufactures components for plasma TVs. The components can be sold either

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Exercise 11A-3 Transfer Pricing from the Viewpoint of the Entire Company [LO6) Division A manufactures components for plasma TVs. The components can be sold either to Division B of the same company or to outside oustomers. Last year, the following activity was recorded in Di vision A Selling price per component S 525 Variable cost per component300 Number of components Produced during the year 20.000 16,000 Sold to outside oustomers Soid to Division B 4,000 Sales to Division B were at the same price as sales to outside customers. The components purchased variable oost per TV and then sold the TVs for $1,800 each Required 1. Prepare inoome statements for last year for Division A, Division 8, and the company as a whole by Division B were used in TVmanufactured by that dvision Ovision 8 incurred $000 in additional Division A Division B Total Compan ales Expenses Transfer price paid Adoed by the division Total expenses ncome

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