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I can't figure out the number for total company because it isnt division A plus division B added together Division A manufactures electronic circuit boards.
I can't figure out the number for total company because it isnt division A plus division B added together
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: Selling price per circuit board189 Variable cost per circuit board 130 Number of circuit boards: Produced during the year Sold to outside customers Sold to Division E 21,700 15,800 5,900 Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in arn electronic instrument manufactured by that division (one board per instrument). Division B incurred $230 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 21,700 circuit boards. Next year, Division B 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 additional 1,000 circuit boards to Division B or continue to sell them to outside customersStep by Step Solution
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