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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 ITO 10 Belling price per circuit board Variable cost per circuit board Number of circuit boards Produced during the year Sold to outside customers Sold to Division 1 21,500 19, 100 5,000 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 $210 in additional variable cost per instrument and then sold the instruments for $630 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 21,500 circuit boards. Next year. Division 8 wants to purchase 7,400 circuit boards from Division A rather than 6,400. (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 1 Required 2 Calculate the net operating incomes earned by Division A, Division B, and the company as a whole Division A Division 3 Total Company Sales Expenses: Added by the division Transfer price paid Total expenses Net operating income Red Required 2 >

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