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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

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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: $ 181 122 Selling price per circuit board Variable cont per circuit board Number of circuit boardes Produced during the year sold to outside customers Sold to Division 1 21.000 15,000 5,000 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 incurred $240 in additional variable cost per Instrument and then sold the instruments for $610 each. Required: 1. Calculate the net operating incomes earned by Division A Division B, and the company as a whole 2. Assume Division As manufacturing capacity is 21000 circuit boards. Next year, Division B wants to purchase 7000 circuit boards from Division A rather than 6,000. (Circuit boards of this type are not available from outside sources) From the standpoint of the company as a whole, should Division A the 1000 additional circuit boards to Division or continue to sell them to outside customers

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