Division A manufactures electronic circuit boards. The boards can be sold either to Division B...
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Accounting
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
$
178
Variable cost per circuit board
$
114
Number of circuit boards:
Produced during the year
21,100
Sold to outside customers
15,300
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 $210 in additional variable cost per instrument and then sold the instruments for $600 each.
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