A manufactures electronic circuit boards that can be sold to Division B of the same company or

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A manufactures electronic circuit boards that can be sold 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 $ 182 Variable cost per circuit board $ 127 Number of circuit boards: Produced during the year 21,800 Sold to outside customers 16,000 Sold to Division B 5,800 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 $680 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 21,800 circuit boards. Next year, Division B wants to purchase 6,800 circuit boards from Division A rather than 5,800. (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 selling them to outside customers? 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 Assume Division A's manufacturing capacity is 21,800 circuit boards. Next year, Division B wants to purchase 6,800 circuit boards from Division A rather than 5,800. (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 selling them to outside customers? Show less

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

Continue to sell the additional 1,000 circuit boards to outside customers.radio button unchecked1 of 2 .Sell the 1,000 additional circuit boards to Division B.