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2 Exercise 11A-2 Transfer Pricing from the Viewpoint of the Entire Company [LO11-5) 0 oints 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 eircuit board $ 193 Variable cost per circuit board 126 Number of cireuit boards: Produced during the year Sold to outside customers Sold to Division B 21,900 14,000 7.900 Sales to Division 8 were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in an Hint 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 $610 each. 1. Prepare income statements for Division A, Division B, and the company as a whole. Required: 2. Assume Division A's manufacturing capacity is 21,900 circuit boards. Next year, Division B wants to purchase 8,900 circuit boards Print from Division A rather than 7,900. (Circuit boards of this type are not available from outside sources.) From the standpoint of the References company as a whole, should Division A sell the additional 1,000 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 1Required 2 Prepare income statements for Division A, Division B, and the company as a whole. A Division B Total Sales