Question: please provide step by step notes! thank you 15,600 Division A manufactures electronic circuit boards. The boards can be sold either to Division B of
15,600 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 $184 Variable cost per circuit board $ 116 Number of circuit boards: Produced during the year 21,900 Sold to outside customers Sold to Division 6,300 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 $260 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 21,900 circuit boards. Next year, Division B wants to purchase 7,300 circuit boards from Division A rather than 6,300. (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 1000 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: Required 2 Calculate the net operating incomes earned by Division A Division B, and the company as a whole. Division 1 Total Company Division $ 4,029,600 Sales Expenses Added by the division Transfer price paid Total expenses Net operating income 0 $ 4,029 6005 0 05 0 0 Required 2 >
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