The Conti Company is decentralized, and divisions are considered investment contors. Con has onedivision that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division cuts,assembles, and finishes the cak chairs and then purchases and attaches the seat cushions(Click the icon to view additional information)Read the requirementsRequirement 3. Assume the Chair Division purchases the 900 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company?(Enter "0" for any zero amounts)Number of unitsContribution margin per unt Total contribution marginCushion DivisionTotalRequirement 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Con Company?The best option for Coisin total contribution margin than if the duson purchanchons inveralyBy having the Chair Division purchase the cushions from a in outside vendor, the company would getRequirement 5. Assume the Cushion Division has capacity of 1,800 cushions per quator and000 cushione per quantor Whal transfer price should Conti Company set? Explain your reasoning Using thetheoneprice you determined, calculate the total contribution margin for the quarterprice you determined, calculateMore inforhpThe Conti Company is decentralized, and divisions are considered investment centers. Conti has onedivision that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division cuts,assembles, and finishes the oak chairs and then purchases and attaches the seat cushions(Click the icon to view additional information)Read the requirementsRequirement 1. Determine the lctal contribution margin for Conti Company for the quarterNumber of unitsContribution mangin per unit Total contribution marginChair OvitionCushion DivisionTotalRequirement 2. Assume the Chair Division purchases the 900 cushions needed from the Cushion Division at its curent sales price. What is the loial contribution margin for each division and the company?Number of unitsChair DivisionCushion DivisionMore inforar and also supply the Chair Division with811Click the icon to view additional informationbak dining room chairs with upholstered seat cushions The Chair Division cutsgak chairs and then pMore infoon purchase the cushionthe Cushion Division hasWhat transfer price shouThe Chair Division currently purchases the cushions for $26 from an outside vendor. The CushionDivision manufactures upholstered seat cushions that are sold to customers outside the companyThe Chair Division currently sells 900 chairs per quarter, and the Cushion Division is operating atcapacity, which is 900 cushions per quarter. The two divisions repart the following informationset the transfer price at.Chair DivisionCushion DivisionSales Price por Chair5.Sales Price per Cushion3210042 Vorfable Cost per Cushion8you determined, calculateNumber of unitVariable Cost (other than cushion)Variable Cost (cushion)26Contribution Margin per ChairContribution Margin per CushionkternaltemalPrintDoneThe Con Company is decentralized, and divisions are considered investment centers. Cont has onedivision that manufactures cak dining room chairs with upholstered seat cushions. The Chair Division outsassembles, and finishes the oak chairs and then purchases and attaches the seat cushions.(Click the icon to view additional information)Read the requirumentsBy having the Chair Division purchase the cushions from an outside vendor, the company would generatein total contribution margin than if the division purchases cushions intomatyRequirement 5. Assume the Cushion Division has capacity of 1,000 cushions per quarter and can continue to supply its outside customers with 900 cushions per quarter and also supply the Chair Division with900 cushions per quarter. What transter price should Cont Company set? Explain your reasoning. Using the transfer price you deforminod, calculate the total contribution mungin for the quarterbecause the Chair Division would not be willing to pay more thanCon Company should set the barnfor price atUsing the transfer price you determined, calculate the total contribution margin for the quarterContribution margin perunikNumber of unitsChair DivisionCushion Division-calamalCushion Division-intemalTotalMore infor24

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The Cont Company is decentraled and divisions are considered investment centers Cond has one division that manufactures ook dining room chairs with upnollred seat cushions. The Chair Division outs assenties and frishes the cak chairs and then purchases and attaches the seat cushions Click the icon to view additional information) Read the requruchs Requirement 3 Assume the Chair Dision purchases the 900 cushions needed from the Cashion Division at Is cument variable cost What is the lontibution murge for each division and the company? En for any s Number of un Consuon margin per un Tuta contbuon magn Cher Division Cushion Divon Requirement & Review your answers for Requirements 1.2 and 3. What is the best option for Con Company? The best option to Ca V total contribution margh Thahe on praons aly By having the Char Din purchase the one from an outside vender the company would gen econd to go alunos with 00 ale per quanday the Chair Chot with Requirments. Asume the Cushion Division has capacity of 1.800 og ung the proe you detomat, caule the contbune marge to the 000 cushione per qator What are price should Cons Company? Explain your ring More infor The Cons Company is decantauad, and divisions are considerations. The Chair Division outs vestment Cond has one dision that manufactures oak dining room chairs with upholstered seat cushion (Click the icon to view additional information) Read the ess assemties, and finishes the oak chairs and then purchases and attaches the seat cushions Requirement 1. Deline the icts contribution margin for Cons Company for the quarter Number of unis Contribution margin perunt Total contribution margin Char Con Cushon Division Tota Requirement 2. Aune the Char Division purchases the 500 cushions needed from the Cushion Date curent sales price. What is the al contributo Nunter of unts More info 8 company? dak chairs and then p on purchase the cushion The Cushion Division has What transfer price shou set the transfer price at you determined, calculata Number of unit temal More info The Chair Division currently purchases the cushions for $26 from an outside vendor. The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company The Chair Division currently sells 900 chairs per quarter, and the Cushion Division is operating at capacity, which is 900 cushions per quarter. The two divisions report the following information S 32 Chair Division Sales Price per Chair Variable Cost (other than cushion) Variable Cost (cushion) Contribution Margin per Chair Cushion Division 100 Sales Price per Cushion 42 Vorfable Cost per Cushion 26 8 Print The Con Company is decerbalized and disions are considered investment centers, Cond has ovision ok chairs with one. The Chair Division By having the Chak Division purchase the cushions from an outside vendor, the company would generate Requirement 5. Assure the Cushion Division has capacity of 1,300 cahon p 900 calon pequr What transfer price should Cons Company sat? Explan your making the Using ander price because the Chair Division would not being to pay more th Con Company should set the analor price at Using the transfer price you determined, calculate the total contribution margin for the quarter Char Divaon - Cashion Division calamal Cushion Division- More infor 24 Contribution Margin per Cushion Done Click the loon to view additional information) Read the reument coulion margin than the din purchases only sounds with cushions per air and apply the Char Din determinat the contbuon magn to the quote