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 $125Variable cost per circuit board $90Number of circuit boards:Produced during the year 20,000Sold to outside customers 16,000Sold to Division B 4,000Sales 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 CompanySales $ $ $Expenses:Added by the divisionTransfer price paidTotal expensesNet operating income
