More info The Chair Division currently purchases the cushions for $15 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: Requirements 1. Determine the total contribution margin for Dutton 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 Dutton 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 Dutton 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 peice. What is the fotal contribution margin for each division and the company? Requirement 3. Assume the Chair Division purchases the 900 custions needed from the Cushion Divition at is current variable cost. Whyt is the fotal contibution margin for each division and the company? (Enter " 0 " for any zero amounts.) By having the Chair Division purchase the cushions trom an outside vendor, the company would generate Requirement 5. Assume the Cushion Division has capachy of 1,800 cushions per quarter and can continue to supply its outside customers with goo cushions per quarter and aho nupply ine Char Division with 900 cushions per quartor. What transfer price should Dutton Compary set? Explain your raasoning. Using the transfer price you determined, calculate the lotal conerbulion marpn for the guarter