Division A manufactures electronic circult boards. The boards can be sold either to Division of the same company or to o

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Division A Manufactures Electronic Circult Boards The Boards Can Be Sold Either To Division Of The Same Company Or To O 1 (43.81 KiB) Viewed 39 times

Division A Manufactures Electronic Circult Boards The Boards Can Be Sold Either To Division Of The Same Company Or To O 2 (53.88 KiB) Viewed 39 times

Division A manufactures electronic circult boards. The boards can be sold either to Division of the same company or to outside customers. Last year, the following activity occurred in Division A Selling price per circuit board $ 185 Variable cost per circuit board $ 113 Number of circuit boards: Produced during the year 20,500 Sold to outside customers 14,700 Sold to Division B 5,800 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 $220 in additional variable cost per Instrument and then sold the instruments for $610 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 6,800 circult boards from Division A rather than 5.800. (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 circult 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. Division A Division B Total Company Sales Expenses: Added by the division Transfer price paid Total expenses 0
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 con Division A Division B Total Company Sales Expenses: Added by the division Transfer price paid Total expenses Net operating income 0 0 0 $ olo $ 0 $ Required Required 2 >