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I need the total company sales. Exercise 11A-2 Transfer Pricing from the Viewpoint of the Entire Company [L011-5) Division A manufactures electronic circuit boards. The
I need the total company sales. Exercise 11A-2 Transfer Pricing from the Viewpoint of the Entire Company [L011-5) Division A manufactures electronic circuit boards. The boards can be sold either to Division 8 of the same company or to outside customers. Last year, the following activity occurred in Division A selling price per cireuit board Variable cost per circuit board Number of circuit boards: 177 111 Produced during the year Sold to outside customers Sold to Division B 21,700 14,700 7,000 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 $240 in additional variable cost per instrument and then sold the instruments for $660 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 8,000 circuit boards from Division A rather than 7,000. (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? Requiled Prepare income statements for Division A, Division B, and the compan Division Total Division B Company 3.840.900S 4,620,000S 8,460,900 Sales 3,840,900 Expenses: Added by the division 2.408,700 1,680,0004,088,700 Transfer price paid Total expenses Net operating income 0 2,408,700 1.432,200 1,239,000 2,919,000 4,088,700 1,701,000 4,372,200 Required 1 K Prev 2 of5
I need the total company sales.
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