Question: Please answer when you can with details. Thank you. Division A manufactures electronic circuit boards. The boards can be sold either to Division B of

 Please answer when you can with details. Thank you. Division A
manufactures electronic circuit boards. The boards can be sold either to Division
Please answer when you can with details. Thank you.

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 $ $ 179 117 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 8 21,100 14,200 6.900 Sales to Division B were at the same price as safes 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 Bincurred $280 in additional variable cost per instrument and then sold the instruments for $690 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 21,100 circuit boards Next year. Division B wants to purchase 7900 circuit boards from Division A rather than 6.900. (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 drcuit boards to Division of continue to sell 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 0 0 0 $ 0 S 0 $ 0 Required: Required 2 >

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!