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All Requirements please. (Click the icon to view additional information The Ricci Company is decentralized and divisions are considered investment centers Ricci has one division
All Requirements please.
(Click the icon to view additional information The Ricci Company is decentralized and divisions are considered investment centers Ricci has one division 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 Read the routements Requirement 1. Determine the total contribution margin for Rice Company for the quarter Number of units Contribution margin per unit Total contribution margin Chair Division Cushion Division Total Requirement 2. Assume the Chair Division purchases the 1800 cushions needed from the Cushion Division at its current sale price What is the total contribution margin for each division and the company? Number of units Contribution margin per unit Total contribution margin Char Division Cushion Division Total (Click the icon to view additional informati mpany is decentralized, and divisions are considered investment has one division that manufactures oak dining room chairs with seat cushions The Chair Division cuts, assembles and finishes the nd then purchases and attaches the seat cushions Read the requirements nt 1. i More Info sion Division brice ment 2 reachd The Chair Division currently purchases the cushions for $18 from an outside vendor The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company The Chair Division currently sells 1,800 chairs per quarter and the Cushion Division is operating at capacity, which is 1,800 cushions per quarter The two divisions report the following information Chair Division Cushion Division Sales Price per Chair $ 105 Sales Price per Cushion 30 Variable Cost (other than cushion) 42 Variable Cost por Cushion 17 18 Variable Cost (cushion) 45 S 13 Contribution Margin per Chair Contribution Margin per Cushion vision Division Print Done le cost ement 3 for each a Number of units Contribution margin per unit Total contribution margin Division The Rice Company is decentralized and divisions are considered investment centers Ricci has one division that manufactures oak dining room chairs with (Click the icon to view additional information upholstered seat cushions. The Chair Division cuts, assembles and finishes the Read the requirements oak chairs and then purchases and attaches the seat cushions Requirement 3. Assume the Chair Division purchases the 1 900 cushions needed from the Cushion Division at its current vanable cost What is the total contribution margin for each division and the company? (Enter "O" for any zero amounts) Number of units Contribution margin per unit Total contribution margin Chair Division Cushion Division Total Requirement 4. Review your answers for Requirements 1, 2 and 3 What is the best option for Rice Company The best option for Ricci in total contribution margin than the division By having the Chair Division purchase the cushions from an outside vendor the company would generato purchases cushions internally Requirement 6. Assume the Cushion Division has capacity of 3,600 cushions per quarter and can continue to supply its outside customers with 1,800 cushions per quarter and also supply the Chair Division with 1 800 cushions per quarter what transfer price should Rica Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter Rica Company should set the transfer price at because the Char Division would not be willing to pay more than Using the transfer price you determined, calculate the total contribution margin for the quarter Number of units Contribution margim per unit Total contribution margin Chair Division Cushion Division external Cushion Division internal Total Step by Step Solution
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