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Saved Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in
Saved 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 $270 in additional variable cost per instrument and then sold the instruments for $620 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 21,900 circuit boards. Next year. Division B wants to purchase 8,700 circuit boards from Division A rather than 7,700. (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? Complete this question by entering your answers in the tabs below Required1 Required 2 Prepare income statements for Division A, Division B, and the company as a whole. Division A Division B Total Company Total expenses Net operating income Required 2 Saved 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 $270 in additional variable cost per instrument and then sold the instruments for $620 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 21,900 circuit boards. Next year. Division B wants to purchase 8,700 circuit boards from Division A rather than 7,700. (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? Complete this question by entering your answers in the tabs below Required1 Required 2 Prepare income statements for Division A, Division B, and the company as a whole. Division A Division B Total Company Total expenses Net operating income Required 2
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