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The Chacon Company is decentralized, and divisions are considered investment centers. Chacon has one division that manufactures oak dining room chairs with upholstered seat cushions.
The Chacon Company is decentralized, and divisions are considered investment centers. Chacon 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. (Click the icon to view additional information.) Read the requirements. Requirement 1. Determine the total contribution margin for Chacon Company for the quarter. Number of units x Contribution margin per unitTotal contribution margin Chair Division Cushion Division Total Requirement 2. Assume the Chair Division purchases the 1,100 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company? Number of units x Contribution margin per unitTotal contribution margin Chair Division Cushion Division Total
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