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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You can see the logs in the Dashboard.