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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 $260 in additional variable cost per Instrument and then sold the instruments for $620 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 B wants to purchase 7700 circuit boards from Division A rather than 6,700. (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, and the company as a whole. Division A Division B Total Company 2,856,400 $ 4,154,000 $ 7,010,400 Sales Expenses Added by the division Transfer price paid Total expenses Nat operating income 2,623,000 1,742,000 4,365,000 2,623.000 1,742,000 5.233 400 $ 2.412,000 $ 4,365,000 2,645,400 Required 2 >

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