Answered step by step
Verified Expert Solution
Question
1 Approved Answer
First 3 photos are examples of similar problems, I posted them to show that their is extra three parts to the question. ONLY ANSWER if
First 3 photos are examples of similar problems, I posted them to show that their is extra three parts to the question. ONLY ANSWER if you are going to do all.
is P24-27B (similar to) O Requirements (Click the ica The Coley Company is decentralized, and divisions are considered investment centers. Coley 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 require x Requirement 1. Determine the total contribution margin for Coley Company for the quarter. Number of units Contribution margin per unit Total contribution margin Chair Division 900 $ 24 $ 21,600 $ 900 Cushion Division $ 22 19,800 $ 41,400 Total X 1. Determine the total contribution margin for Coley Company for the quarter. 2. Assume the Chair Division purchases the 900 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company? 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? 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Coley Company? 5. Assume the Cushion Division has capacity of 1,800 cushions per quarter and can continue to supply its outside customers with 900 cushions per quarter and also supply the Chair Division with 900 cushions per quarter. What transfer price should Coley Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Requirement 2. Assume the Chair Division purchases the 900 cushions needed from the Cushion Division at its current sales price. W X = Number of units 900 Contribution margin per unit $ 20 Chair Division Total contribution margin $ 18.000 19.800 $ Cushion Division 900 X $ 22 Total $ 37.800 Print Done TIIGI Tur GLI UTVISTUIT CITU IT company LTET U TUT my Requirement 3. Assume the Chair Division purchases the 900 cushions needed from the Cushion Division at its current variable cost. Current is die tutar zero amounts.) This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. All parts showing Similar Question 9:46 PM Type here to search 09 lica 7/25/2020 P24-27B (similar to) Question Help O Click the icon to view additional information.) The Coley Company is decentralized, and divisions are considered investment centers. Coley 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 requirements. Requirement 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 "O" for any zero amounts.) Number of units 900 Contribution margin per unit $ 42 Total contribution margin $ 37,800 Chair Division 900 0 $ Cushion Division 0 $ 37,800 Total Requirement 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Coley Company? The best option for Coley is the current scenario (Requirement 1). By having the Chair Division purchase the cushions from an outside vendor, the company would generate more in total contribution margin than if the division purchases cushions internally. Requirement 5. Assume the Cushion Division has capacity of 1,800 cushions per quarter and can continue to supply its outside customers with 900 cushions per quarter and also supply the Chair Division with 900 cushions per quarter. What transfer price should Coley Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Calaramundant the transferrien at n hace the Chairn.inin dat het numer than This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. All parts showing Similar Question 9:48 PM Type here to search lica 7/25/2020 P24-27B (similar to) Question Help o Click the icon to view additional information.) The Coley Company is decentralized, and divisions are considered investment centers. Coley 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. The best option for Coley is the current scenario (Requirement 1). Read the requirements By having the Chair Division purchase the cushions from an outside vendor, the company would generate more in total contribution margin than if division purchases cushions internally Requirement 5. Assume the Cushion Division has capacity of 1,800 cushions per quarter and can continue to supply its outside customers with 900 cushions per quarter and also supply the Chair Division with 900 cushions per quarter. What transfer price should Coley Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Coley Company should set the transfer price at $ 30 because the Chair Division would not be willing to pay more than the price for which it can purchase the cushions from an outside vendor. Using the transfer price you determined, calculate the total contribution margin for the quarter. Number of units 900 Contribution margin per unit x $ 24 Total contribution margin $ 21,600 Chair Division Cushion Division-external 900 $ 22 $ 19.800 1 Cushion Division-internal 900 $ 18 16,200 57,600 Total This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. ? All parts showing Similar Question 9:48 PM Type here to search o lica 7/25/2020 (Click the icon to view additional information.) The Hobson Company is decentralized, and divisions are considered investment centers. Hobson 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. Re Requirements - X Requirement 1. Determine the total contribution margin for Hobson Company for the quarter. Number of units Contribution margin per unit Total contribution margin x Chair Division Cushion Division Total 1. Determine the total contribution margin for Hobson Company for the quarter. 2. Assume the Chair Division purchases the 1,500 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company? 3. Assume the Chair Division purchases the 1,500 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company? 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Hobson Company? 5. Assume the Cushion Division has capacity of 3,000 cushions per quarter and can continue to supply its outside customers with 1,500 cushions per quarter and also supply the Chair Division with 1,500 cushions per quarter. What transfer price should Hobson Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Enter any number in the edit fields and then click Check Answer Print Done ver 9:49 PM 7/25/2020 1 is P24-27B (similar to) O Requirements (Click the ica The Coley Company is decentralized, and divisions are considered investment centers. Coley 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 require x Requirement 1. Determine the total contribution margin for Coley Company for the quarter. Number of units Contribution margin per unit Total contribution margin Chair Division 900 $ 24 $ 21,600 $ 900 Cushion Division $ 22 19,800 $ 41,400 Total X 1. Determine the total contribution margin for Coley Company for the quarter. 2. Assume the Chair Division purchases the 900 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company? 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? 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Coley Company? 5. Assume the Cushion Division has capacity of 1,800 cushions per quarter and can continue to supply its outside customers with 900 cushions per quarter and also supply the Chair Division with 900 cushions per quarter. What transfer price should Coley Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Requirement 2. Assume the Chair Division purchases the 900 cushions needed from the Cushion Division at its current sales price. W X = Number of units 900 Contribution margin per unit $ 20 Chair Division Total contribution margin $ 18.000 19.800 $ Cushion Division 900 X $ 22 Total $ 37.800 Print Done TIIGI Tur GLI UTVISTUIT CITU IT company LTET U TUT my Requirement 3. Assume the Chair Division purchases the 900 cushions needed from the Cushion Division at its current variable cost. Current is die tutar zero amounts.) This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. All parts showing Similar Question 9:46 PM Type here to search 09 lica 7/25/2020 P24-27B (similar to) Question Help O Click the icon to view additional information.) The Coley Company is decentralized, and divisions are considered investment centers. Coley 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 requirements. Requirement 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 "O" for any zero amounts.) Number of units 900 Contribution margin per unit $ 42 Total contribution margin $ 37,800 Chair Division 900 0 $ Cushion Division 0 $ 37,800 Total Requirement 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Coley Company? The best option for Coley is the current scenario (Requirement 1). By having the Chair Division purchase the cushions from an outside vendor, the company would generate more in total contribution margin than if the division purchases cushions internally. Requirement 5. Assume the Cushion Division has capacity of 1,800 cushions per quarter and can continue to supply its outside customers with 900 cushions per quarter and also supply the Chair Division with 900 cushions per quarter. What transfer price should Coley Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Calaramundant the transferrien at n hace the Chairn.inin dat het numer than This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. All parts showing Similar Question 9:48 PM Type here to search lica 7/25/2020 P24-27B (similar to) Question Help o Click the icon to view additional information.) The Coley Company is decentralized, and divisions are considered investment centers. Coley 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. The best option for Coley is the current scenario (Requirement 1). Read the requirements By having the Chair Division purchase the cushions from an outside vendor, the company would generate more in total contribution margin than if division purchases cushions internally Requirement 5. Assume the Cushion Division has capacity of 1,800 cushions per quarter and can continue to supply its outside customers with 900 cushions per quarter and also supply the Chair Division with 900 cushions per quarter. What transfer price should Coley Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Coley Company should set the transfer price at $ 30 because the Chair Division would not be willing to pay more than the price for which it can purchase the cushions from an outside vendor. Using the transfer price you determined, calculate the total contribution margin for the quarter. Number of units 900 Contribution margin per unit x $ 24 Total contribution margin $ 21,600 Chair Division Cushion Division-external 900 $ 22 $ 19.800 1 Cushion Division-internal 900 $ 18 16,200 57,600 Total This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. ? All parts showing Similar Question 9:48 PM Type here to search o lica 7/25/2020 (Click the icon to view additional information.) The Hobson Company is decentralized, and divisions are considered investment centers. Hobson 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. Re Requirements - X Requirement 1. Determine the total contribution margin for Hobson Company for the quarter. Number of units Contribution margin per unit Total contribution margin x Chair Division Cushion Division Total 1. Determine the total contribution margin for Hobson Company for the quarter. 2. Assume the Chair Division purchases the 1,500 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company? 3. Assume the Chair Division purchases the 1,500 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company? 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Hobson Company? 5. Assume the Cushion Division has capacity of 3,000 cushions per quarter and can continue to supply its outside customers with 1,500 cushions per quarter and also supply the Chair Division with 1,500 cushions per quarter. What transfer price should Hobson Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Enter any number in the edit fields and then click Check Answer Print Done ver 9:49 PM 7/25/2020 1Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started