Business, 13.03.2020 23:50 emilyjohnna11

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 $125
Variable 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 manufactured by that division. (one board per instrument). Division B incurred $100 in additional variable cost per instrument and then sold the instruments for $300 each.

Prepare income statements for Division A, Division B, and the company as a whole:

Division A Division B Total Company
Sales $ $ $
Expenses:
Added by the division
Transfer price paid
Total expenses
Net operating income

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

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