Help Save it Submit Check my word Exercise 11.7 (Algo) Transfer Pricing from the Viewpoint of the Entire Company (LO11-3) Division A manufactures electronic circuit boards. The boards can be sold either to Division of the same company or to outside customers. Last year, the following activity occurred in Division A 3 193 Selling price per circuit board Variable cont per crunt board Humber of circuit boards Produced during the year Hold to outside customers told to Division 21.100 15,600 5.500 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 8 incurred $230 in additional variable cost per Instrument and then sold the instruments for $640 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 21100 circuit boards. Next year, Division B wants to purchase 6.500 circuit boards from Division A rather than 5.500 (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 1,000 additional circuit boards to Division or continue to sell them to outside customers? HW.CH 11 Concept Overviews. Exercises, Problems Help Suve & Exit Sub Check my work 17 wwwwwww customers? Complete this question by entering your answers in the tabs below. 023 Required Calculate the net operating incomes earned by Division A. Division and the company as a whole Division A Division Total Company Bale Expenses Added by the division Transfer price paid Total expenses Nostoperatg income Required 22 DUAS manufacturing capacity is 21100 circuit boards. Next year, Division B wants to purchase 6,500 circuit boards from Division A rather than 5,500. (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 1,000 additional circuit boards to Division B or continue to sell them to outside customers? 0.23 points Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume Division A's manufacturing capacity is 21,100 circuit boards. Next year, Division 3 wants to purchase 6,500 circuit boards from Division A rather than 5,500. (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? Show less Continue to sell the additional 1,000 circuit boards to outside customers Sell the 1,000 additional circuit boards to Division B