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second question Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers.
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Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A: $ $ 190 124 selling price per circuit board Variable cost per circuit board Number of circuit boardst Produced during the year Sold to outside customers Sold to Division B 21,000 14,800 6,200 Sales to Division 8 were at the same price as sales to outside customers. The circuit boards purchased by Division B were used electronic Instrument manufactured by that division (one board per instrument). Division B incurred $260 in additional variable cose 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 21,000 circuit boards. Next year, Division B wants to purchase 2200 from Division A rather than 6,200. (Circuit boards of this type are not available from outside sources) From the state company as a whole, should Division A sell the 1,000 additional circuit boards to Division B or continue to set to customers? Complete this question by entering your answers in the tabs below. 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 21,000 circuit boards. Next year, Division B wants to purchase 7200 circuit boards from Division A rather than 6,200. (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 > A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.) C Sales 300,000 Company B 830,000 44,000 $ $ $ 550,000 $ s $ 164.000 21 % 154,000 % 18 % Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return; Percentage Dollar amount Residual income 17 % % 14 % $ 59,000 $ 4,000
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