would you please make sure that the answers are correct. i don\'t know why but a

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would you please make sure that the answers are correct.  i don't know why but almost all of the answer that i got from chegg are wrong. thanks

Check my work 2 Exercise 11A-2 Transfer Pricing from the Viewpoint of the Entire Company [LO11-5] 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: 10 points Selling price per circuit board Variable cost per circuit board Number of circuit boards: $177 $ 128 Book Produced during the year Sold to outside customers Sold to Division B 21,188 15,000 6,100 Hint 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 $230 in additional variable cost per instrument and then sold the instruments for $690 each Print Required: References 1. Prepare income statements forDivision A, Division B, and the company as a whole 2. Assume Division A's manufacturing capacity is 21,100 circuit boards. Next year, Division B wants to purchase 7100 circuit boards from Division A rather than 6,100. (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 additional 1,000 circuit boards to Division EB or continue to sell them to outside customers? Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare income statements for Division A, Division B, and the company as a whole Division A Division BTotal Company Sales Expenses Added by the division Transfer price paid Total expenses 0 0 Net operating income 0 Required 1 Required 2>

Explanation / Answer

1 Division A Division B Total Sales 21100*177 6100*690 $ 3,734,700.00 $       4,209,000.00 $ 6,864,000.00 Less:- Variable Expenses 21100*128 6100*230 $ 2,700,800.00 $       1,403,000.00 $ 4,103,800.00             Transfer Cost 6100*177 $       1,079,700.00 Total Expenses $ 2,700,800.00 $       2,482,700.00 $ 4,103,800.00 Net Operating Income $ 1,033,900.00 $       1,726,300.00 $ 2,760,200.00 Division A Outside sales 15000*177 $       2,655,000.00 Division B Outside sales 6100*690 $       4,209,000.00 Total Sales $       6,864,000.00 Division A inside sales 6100*177 $       1,079,700.00 2 Yes, Company should transfer 1000 additional units from Division A to Division B. The Division A's per unit Contribution Margin is $49 (177-128) whereas Division B's per unit Contribution Margin is $283 (690-230-177). Therefore, The Division B's Yield is higher than Division A by $ 234 (283-49).

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