Need help on this question. Cant make sense of it
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 board $ 181 Variable cost per , circuit board $ 12. Number of circuit boards: Produced during the year 21,493 Sold to outside ,, customers 15,29! Sold to Division B 6,23 ' 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 B incurred $270 in additional variable cost per instrument and then sold the instruments for $670 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 21,400 circuit boards. Next year, Division B wants to purchase 7,200 circuit boards from Division A rather than 6,200. {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? Complete this question by entering your answers in the tabs below. Required 1 2 Prepare income statements for Division A, Division B, and the company as a whole. division "mm\" -- I = id Total expenses Net operating income Required 2 > Assume Division A's manufacturing capacity is 21,400 circuit boards. Next year, Division B wants to purchase 7,200 circuit boards from Division A rather than 6,200. (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; 0 Continue to sell the additional 1,000 circuit boards to - utside customers. OSell the 1,000 additional circuit boards to Division B