Division A manufactures electronic circuit boards. The boards can be sold other to Division of the same company or to ou

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Division A Manufactures Electronic Circuit Boards The Boards Can Be Sold Other To Division Of The Same Company Or To Ou 1 (37.62 KiB) Viewed 22 times

Division A manufactures electronic circuit boards. The boards can be sold other to Division of the same company or to outside customers. Last year, the following activity occurred in Division A: Selling price per circuit board $ 194 Variable cost per circuit board $ 111 Number of circuit boards: Produced during the year 21,600 Sold to outside customers 15,300 Sold to Division B 6,300 Sales to Division B were at the same price as soles to outside customers. The circult boards purchased by Division B were used in an electronic Instrument manufactured by the division (one board per Instrument), Division B incurred $240 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 21,600 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 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: Required 2 Calculate the net operating Incomes eamed by Division A. Division , and the company as a whole Division Division 1 Total Company Expenses Added by the division Transfer price paid Total expenses 0 0 O