value: 12.50 points 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: Selling price per circuit board Variable cost per circuit board $193 $120 Number of circuit boards: Produced during the year Sold to outside customers 20,200 15,600 4,600 Sold to Division B 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 $230 in additional variable cost per instrument and then sold the instruments for $610 each. Required: 1. Prepare income statements for Division A, Division B, and the company as a whole. Division A Division B Total Company Sales Expenses Added by the division Transfer price paid Total expenses Net operating income S MacBook A 0 Total expenses Net operating income$ o s 2. Assume that Division A's manufacturing capacity is 20,200 circuit boards. Next year, Division B wants to purchase 5,600 circuit boards from Division A rather than 4,600. (Circuit boards of this type are not available from outside sources.) What should Division A do from the standpoint of the company as a whole? O Continue to sell the circuit boards to outside customers O Sell the 1,000 additional circuit boards to Division B References eBook & Resources Worksheet Difficulty: 1 Easy Learnin MacBook A FI F3 F4 F5 HBEAAA