Exercise 11A-2 Transfer Pricing from the Viewpoint of the Entire Company [LO11-5] Division A manufactures...
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Exercise 11A-2 Transfer Pricing from the Viewpoint of the Entire Company [LO11-5] 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 board178 Variable cost per circuit board Number of circuit boards: Produced during the year Sold to outside customers Sold to Division B 20,300 15,500 4,800 Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in arn 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 $680 each
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