Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. division a manufactures electronic circuit boards.

Division A manufactures electronic circuit boards. The boards can be sold either to Division B...

90.2K

Verified Solution

Question

Accounting

image

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 $126 Production cost per circuit board $90 Number of circuit boards: Produced during the year 20.000 Sold to outside customers 16.000 Sold to Division B 4.000 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 manufacturing by that division (one circuit board per instrument) Division B incurred $100 in additional cost per instrument and then sold the instruments for $300 each Assume that Division A's manufacturing capacity is 20.000 circuit boards, and demand from outside customers will remain at 16,000 units Next year, Division B wants to purchase 5,000 circuit boards from Division A rather than 4,000 Circuit boards of this type are not available from other sources If Division A decides to sell the extra 1,000 units to Division B. what impact if any will the decision have on the overall company's profits'? $ Increase/Decrease/No Change

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students