Question H red investment centers, Ricci has one division that manufactures oak dining outs, assemblies, and finishes the oak chairs and then purchases and attaches Click the loon to view additional information) Read the requirements ny for the quarter per unit Total contribution margin More Info Requirements The Chair Division Currently purchases the cushions for $30 from an outside vender The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company The Chair Division currently sells 1.500 chairs per quarter, and the Cushion Division is operating at capacity, which is 1,500 cushions per quarter. The two divisions report the following information Chair Division Cushion Division Sales Price per Chair $ 90 Sales Price per Cushion $ 34 Variable Cost other than cushion) 55 Variable Cost per Cushion 16 30 Variable Cost cushion) 5 18 Contribution Margin per Chair Contribution Margin per Cushion 1. Determine the total contribution margin for Rice 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 Rice 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 Rice Company Set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter Print Done now. W D option for Company Print Done side vendor, the company would generate in total contribution margin than if the division purchases cushions internally, 4000 cushions per quarter and can continue to supply its outside customers with 1,500 cushions per quarter and also supply the Chair Diviston with 1,500 cushions per quator. What transfer price should Rice Compu because the Chair Division would not be willing to pay more than ribution margin for the quarter and then continue to the next question The Company decorated, and in cand in case on the car dring rooms with upholstered serionsThe Car Division, and finishes the chairs and then purchases and the the cushion Requirement 1 Determine the contribution man for Company for the Total contribution Dush Requirement 2. Assume Or Divisen purchase the 1500shion needed to the Ohio Dision is current price whose contribution win for each division and the company Dushion Regiment 3. Asume the Chair Dision purchased the 1.500 cushion readed from Cushion Division at ts current rec What she combinan for each division and the company for any wo wounta) . Corrbution margin perunt - Total contribution margin Requirement Review your neers for Requirements 1.2. und The best option for no contribution margin than the division purchases cushions internally Requirements. At the Creaty of 3.000 where per and can continuously use custom.600 min per week the Char Division 1.500 kr per What retur price should Reed Company Rice Company should the price Uwing the price you end, calculate the total contribution margin for the quartet Choose from any story in roads and the continue to the next to virement 2. Au the Chairson purchases the 1,500 cushion needed from the Cushion Division is current sales price. What is the contribution marynach division and the company Number Conto main perustution margin quirementsume the Chivision purchases 1500 conded from the Orion Divisione col What is the courage for each division and the company anymous * Contribution on perunt Total contributor SD Requirements. The Division capacity 3.000 percances de comers with the sole Charish 1.500 cushions peut what were prese Rice Company Explain your moi. Using the tale price you determine calde e combinan for the Lang the transfer price you dimined, calculate the total contribution margin for the quarter Number one * Contribution marginant - Total contribution margin Chino- Choose from any list or enter any number in the input felds and then continue to the next question room chairs with upholstered seat cushions. The Chair Division cuts, assembles, and finishes the oak challs and then the seat cushions. Requirement 2. Assume the Chair Division purchases the 1,500 cushions needed from the Cushion Division at its current sales price. What is Number of units Contribution margin per unit Total contribution margin Chair Division Cushion Division 11 Total Requirement 3. Assume the Chair Division purchases the 1,500 cushions needed from the Cushion Division at its current variable cost. What is 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 Ricci Company? The best option for Ricci is nargin the ners with By having the Chair Divisiot the current scenario (Requirement 1). Requirement 5. Assume th for the Chair Division to purchase cushions internally at the current sales price (Requirement 2). Explain your reasoning. Usi for the Chair Division to purchase cushions internally at the current variable cost (Requirement 3). Ricci Company should set the varster pour DCRUSH nur VISION WOulu no De Wmny w puy more van Using the transfer price you determined, calculate the total contribution margin for the quarter. Number of units Contribution margin per unit Total contribution margin X Chair Division Cushion Division-external Cushion Division--internal X Total Choose from any list or enter any number in the input fields and then continue to the next question. Total Requirement 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Ricci Company? The best option for Ricci is By having the Chair Division purchase the cushions from an outside vendor, the company would generate in total contribution Requirement 5. Assume the Cushion Division has capacity of 3,000 cushions per quarter and can continue to supply its outside custe Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Ricci Company should set the transfer price at $ 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 the price for which the Cushion Division can sell the cushions to outside customers, Chair DIVISION Cushion Division external Cushion Division-internal x Total Choose from any list or enter any number in the input fields and then continue to the next