Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 Bincurred $200 in additional variable cost per Instrument and then sold the instruments for $620 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 20,100 circuit boards. Next year, Division B wants to purchase 6,700 circuit boards from Division A rather than 5,700. (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 1 Required 2 Calculate the net operating Incomes earned by Division A, Division B, and the company as a whole. Division A Division B Total Company Sales Expenses Added by the division Transfer price paid Total expenses Net operating income Required 2 > 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 $200 in additional variable cost per Instrument and then sold the instruments for $620 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 20,100 circuit boards. Next year, Division B wants to purchase 6,700 circuit boards from Division A rather than 5700. (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 1 Required 2 Assume Division A's manufacturing capacity is 20,100 circuit boards, Next year, Division B wants to purchase 6,700 circuit boards from Division A rather than 5,700. (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 additional 1,000 circuit boards to Division B or continue to sell them to outside customers? Show less cos Continue to sell the additional 1,000 circuit boards to outside customers Sell the 1,000 additional circuit boards to Division 3 w we 4. AV Sold to outside customers 14,400 sold to Division 3 5,700 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 $200 in additional variable cost per instrument and then sold the instruments for $620 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 20,100 circuit boards. Next year, Division B wants to purchase 6,700 circuit boards from Division A rather than 5,700. (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 1 Required 2 Assume Division A's manufacturing capacity is 20,100 circuit boards. Next year, Division 8 wants to purchase 6,700 circuit boards from Division A rather than 5,700. (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 additional 1,000 circuit boards to Division B or continue to sell them to outside customers? Show less Continue to sell the additional 1,000 circuit boards to outside customers Sell the 1,000 additional circuit boards to Division B.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Continuous Auditing A Complete Guide

Authors: Gerardus Blokdyk

2019th Edition

0655540318, 978-0655540311

More Books

Students also viewed these Accounting questions