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Only one issue I am having trouble with. Return to question $ $ 191 116 Selling price per circuit board Variable cost per circuit board
Only one issue I am having trouble with.
Return to question $ $ 191 116 Selling price per circuit board Variable cost per circuit board Number of circuit boards: Produced during the year Sold to outside customers Sold to Division B 21,800 15,000 6,800 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 $250 in additional variable cost per instrument and then sold the instruments for $670 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 21,800 circuit boards. Next year, Division B wants to purchase 7,800 circuit boards from Division A rather than 6,800. (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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the net operating incomes earned by Division A, Division B, and the company as a Total Division A Division B Company Sales $ 4,163,800 $ 4,556,000$ 8,719,800 Expenses Added by the (2,528,800) (1,700,000) (4,228,800) division Transfer price (1.298,800) paid Total expenses (2,528,800) (2,998,800) (4.228,800) Net operating $ 1,635,000 $ 1,557,200 $ 4,491,000 income Step by Step Solution
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