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 $290 in additional variable cost per instrument and then sold the instruments for $680 each.Instruction Manual

In todays business environment, the need for critical thinking skills for both smaller and larger companies is much more prevalent and employers are looking for these skills more and more each day. This Assignment will help you gain some vital experience in writing down your critical thinking process with the intent of showing someone else how to follow your logic.

You will be using Exercise 11-12 from your homework Assignment and breaking it down on a step by step basis explaining what you did to solve it and why. Be sure to put those steps in a word document in paragraph format. You may use bullet points as a sort of table to highlight the steps for clarity (and I recommend this step), but paragraph format is still required.

The word document should be a minimum of at least one page and no more than three pages in length.

Good luck and remember to enjoy this Assignment as critical thinking is a part of business today so you will be doing this throughout your career--it may be in by verbal explanation and not in written form or you may have to write down instructions for a subordinate to follow.

selling price per circuit board 125

Selling price per circuit board	$125
Variable cost per circuit board	$90
Number of circuit boards:
Produced during the year	20000
Sold to outside customers	16000
Sold to Division B	4000

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 $100 in additional variable cost per instrument and then sold the instruments for $300 each.

Prepare income statements for Division A, Division B, and the company as a whole.

Sell the 1,000 additional circuit boards to Division B. Continue to sell the circuit boards to outside customers.

Continue to sell the circuit boards to outside customers.

Assume that Division As manufacturing capacity is 20,000circuit boards. Next year, Division B wants to purchase 5000 circuit boards from Division A rather than 4000. (Circuit boards of this type are not available from outside sources.) What should Division A do from the standpoint of the company as a whole?