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please help with transfer price paid Check my work Division A manufactures electronic circuit boards. The boards can be sold either to Division B of

please help with transfer price paid

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Check my work Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company of 10 outside customers. Last year, the following activity occurred in Division A: Selling price per circuit board $ 181 Variable cost per circuit board $ 124 Number of circuit boards: Produced during the year 20.200 Sold to outside customers 15,940 Sold to Division B 4, 300 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 $210 in additional variable cost per instrument and then sold the instruments for $650 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 20,200 circuit boards. Next year Division B wants to purchase 5,300 circuit boards from Division & rather than 4,300. (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

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