Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Total Company sales is incorrect. I need help. Also tried to input $6,883,600 but this was incorrect as well Division A manufactures electronic circuit boards.

Total Company sales is incorrect. I need help. Also tried to input $6,883,600 but this was incorrect as well

image text in transcribed

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: $ $ 183 128 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 20, 280 15,500 4,780 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 $240 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 20.200 circuit boards. Next year. Division B wants to purchase 5.700 circuit boards from Division A rather than 4,700. (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? Answer is complete but not entirely correct. 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 Division B Total Company S Sales $ 2,914,000 S 6,610,600 3,696,600 Expenses Added by the 2,585,600 1,128,000 3.713,600 division Transfer price paid 880,100 Total expenses 2.585,600 1,988,100 3,713,600 Net operating s $ 925.900 1,111,000 income $ 2.897.000

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_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

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

Get Started

Students explore these related Accounting questions