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Sales to Division B were at the same price as sales to outside customers. The components purchased by Division B were used in a refrigerator
Sales to Division B were at the same price as sales to outside customers. The components purchased by Division B were used in a refrigerator manufactured by that division. Division B incurred $600 in additional ariable cost per refrigerator and sold all the refrigerators manufactured for $1,370 each. ) Complete the income statements for last year for Division A, Division B, and the company as a whole. ) Assume that Division A's manufacturing capacity is 29,000 components per year. Next year, Division B wants to purchase 5,000 components from Division A, rather than only 4,000 components as in last year. Components 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 components to Division B, or should it continue to sell hem to outside customers
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