mework The Hobson Company is decentralized, and divisions are considered investment centers Hobson has one division that manufactures oak dining room chairs with upholster Division cuts, assembles, and finishes the oak chairs and then purch cushions. Requirement 3. Assume the Chair Division purchases the 1,100 cus (Enter "0" for any zero amounts) Chair Division Cushion Division Total Number of units 1,100 1,100 Question 13, PM9-23A (similar to) Part 6 of 6 X Contribution ma 41 0 X $ Chair Division Cushion Division-external Cushion Division-internal Total Requirement 4. Review your answers for Requirements 1, 2, and 3. The best option for Hobson is the current scenario (Requirement 1). X More info x X > Chair Division Sales Price per Chair Variable Cost (other than cushion) Variable Cost (cushion) Contribution Margin per Chair The Chair Division currently purchases the cushions for $32 from an outside vendor. The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company. The Chair Division currently sells 1,100 chairs per quarter, and the Cushion Division is operating at capacity, which is 1,100 cushions per quarter. The two divisions report the following information: Click the ices to view additional information = $ $ $ Hobson Company should set the transfer price at 32 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. Contribution margin per unit Number of units HW Score: 72.3%, 36.15 of 50 points Points: 1.37 of 2 Print 105 56 32 17 Total contribution margin Cushion Division Sales Price per Cushion Variable Cost per Cushion Contribution Margin per Cushion Done $ By having the Chair Division purchase the cushions from an outside Requirement 5. Assume the Cushion Division has capacity of 2,200 with 1,100 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 Chair Division $ 34 8 26 - X Save and the company

DWiston cats, assembles and linistes the oak chairs and then port cunhors More info The Chair Dwtion curently purchases the cushions for 532 from an outside vendor. The Cushion Division mandartures upholsteced seat cushions that are sold to customers outside the company The Char Orvisios curently sedis 1,100 chain per quatec, and the Cushion Division is operating Requirement 3. Assume the Chair Dovision purchases the 1,100 cur (tender "O" for any zoro amounts) Joter Requiremeet 4. Review your answers for Requirenents 1,2, and 3 The beti opton for Hotsion is Dy having the Char Divilon purchase the ceshiens from as ouside Requirement 5. Astume the Cushlon Divison thas capacity of 2.200 Hobson Company shoudd set the iranster price at because the Chei Dwsion wasld nat be wiling to pay more thaft