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help solve Division A manufactures electronic circuit boards. The boards can be sold elther to Division B of the same company or to outside customers.
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Division A manufactures electronic circuit boards. The boards can be sold elther 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 circult boards purchased by Division B were used in an electronic instrument manufactured by that division (one board per instrument). Division B incurred $280 in additional variable cost per instrument and then sold the instruments for $610 each. Required: 1. Calculate the net operating incomes earned by Division A, Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 20,600 circuit boards. Next year, Division 8 wants to purchase 6,900 circuit boards from Division A rather than 5,900 . (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? Complete this question by entering your answers in the tabs below. Caiculate the net operating incomes eamed by Division A, Division B, and the company as a whole Step by Step Solution
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