Question: any help would be greatly appreciated. Help Save & Exit Submit m Division A manufactures electronic circuit boards. The boards can be sold either to
any help would be greatly appreciated.

Help Save & Exit Submit m 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 $ 177 Variable cost per circuit board $ 112 Number of circuit boards! Produced during the year 20,508 Sold to outside customers 14, 080 Sold to Division B 6, 508 13159 Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division S were used in an electronic instrument manufactured by that division (one board per instrument) Division B incurred $280 in additional variable cost per instrument and then sold the instruments for $600 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 20,500 circuit boards. Next year, Division B wants to purchase 7,500 circuit boards from Division A rather than 6,500. (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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
