Saved Help Save & Exit Submit Check my work 5 Exercise 11A-2 (Algo) Transfer Pricing from the Viewpoint of the Entire Company (LO11-5) 5 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: nts un $ 177 112 eBook Selling price per circuit board Variable cost per circuit board Number of circuit boards: Produced during the year Sold to outside customers Sold to Division B 21,100 15,800 5,300 Hint ferences 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 $220 in additional variable cost per instrument and then sold the instruments for $640 each. Required: 1. Prepare income statements for Division A, Division B, and the company as a whole. 2. Assume Division A's manufacturing capacity is 21,100 circuit boards. Next year, Division B wants to purchase 6,300 circuit boards from Division A rather than 5,300. (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 additional 1,000 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 Prepare Income statements for 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