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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

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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 $280 in additional variable cost per instrument and then sold the Instruments for $680 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 21,400 circuit boards. Next year, Division B wants to purchase 8,000 circuit boards from Division A rather than 7,000. (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. Required Required 2 1 Calculate the net operating incomes earned by Division A Division 3, and the company as a whole. ences Division A Division Total Company Sales Expenses Added by the division Transfer price paid Total expenses Net operating income 0 0 0 0 $ $ 0 $ Required 2 > Division A manufactures electronic circuit boards. The boards can be sold either to Division of the same company or to outside customers. Last year, the following activity occurred in Division A: Selling price per circuit board $ 186 Variable cost per circuit board $ 123 Number of circuit boards Produced during the year 21,400 Sold to outside customers 14,400 sold to Division B 7,000 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 $280 in additional variable cost per Instrument and then sold the instruments for $680 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 21,400 circuit boards. Next year, Division B wants to purchase 8,000 circuit boards from Division A rather than 7000. (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 1000 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. Required 2 Required 1 Calculate the net operating incomes earned by Division A, Division, and the company as a whole

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