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 (Click the icon to view additional information) Read the requirements Requirement 1. Determine the total contribution margin for ca - X Number of units X Contribut Chair Division Cushion Division Total Requirement 2. Assume the Chal Division purchases the 1.0 margin for each division and the company? Number of units X Contribut 1. Determine the total contribution margin for Coley Company for the quarter 2. Assume the Chair Division purchases the 1,000 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 1,000 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company? Review your answers for Requirements 1, 2, and 3. What is the best option for Coley Company? Assume the Cushion Division has capacity of 2,000 cushions per quarter and can continue to supply its outside customers with 1,000 cushions per quarter and also supply the Chair Division with 1,000 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 quartier Chair Division Cushion Division Total Requirement 3. Assume the Chair Division purchases the 1.0 contribution margin for each division and the company? (Ented Number of units X Contribu Print Done Choose from any list of enter any number in the input fields (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 1. Determine the total contribution margin for Coley Company for the quarter Number of units X Contribution margin per unit - Total contribution margin Chair Division Cushion Division Total Requirement 2. Assume the Chair Division purchases the 1,000 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 unit - Total contribution margin Chair Division Cushion Division Total Requirement 3. Assume the Chair Division purchases the 1,000 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 X Contribution margin per unit Total contribution margin Choose from any list or enter any number in the input fields and then continue to the next question w Who The Coley Company is decentralized and divisions we considered investment (Click the icon to view additional information) centers. Coley has one division that manufactures oak dining room chats with upholstered seat cushions. The Chair Division cuts, assembles, and finishes the Read the requirements oak chairs and then purchases and attaches the seat cushions Requirement 3. Assume the Chal Division purchases the 1,000 cushions needed from the Cushion Division at is current variable cost. What is the total contribution margin for each division and the company (Enter for any zero amounts) Number of units X 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 Coley Company? The best option for Coley is By having the Chair Division purchase the cushions from an outside vendor, the company would generate in total contribution margin than if the division purchases cushions internally Requirement 5. Assume the Cushion Division has capacity of 2,000 cushions per quarter and can continue to supply its outside customers with 1,000 cushions per quarter and also supply the Chair Division with 1,000 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 because the Chal Division would not be willing to pay more than Choose from any list or enter any number in the input fields and then continue to the next question The Coley Company is decentralized, and divisions are considered investment (Click the icon to view additional information.) centers. Coley has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division cuts, assembles, and finishes the Read the fequitements oak chairs and then purchases and attaches the seat cushions Requirement 4. RUVILW Your WTS TO RequiremeTST, Z, T . VASUUSTUP U TOT LUNY Company The best option for Coley is By having the Chair Division purchase the cushions from an outside vendor, the company would generate in total contribution margin than if the division purchases cushions intemally. Requirement 5. Assume the Cushion Division has capacity of 2,000 cushions per quarter and can continue to supply its outside customers with 1,000 cushions per quarter and also supply the Chair Division with 1,000 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 $ because the Chair Division would not be willing to pay more than Total contribution margin Using the transfer price you determined, calculate the total contribution margin for the quarter Number of units X Contribution margin per unit = Chair Division Cushion Division external x Cushion Division-internal Total Choose from any list or enter any number in the input fields and then continue to the next question The Coley Company is decentralized, and divisions are considered investment centers. Coley hasone 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 tequirements Cushion Division 23 Total er 24 Requirement 3. Assume the Chair Division purchases the 1,000 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 X Contribution margin per unit - Total contribution margin Chair Division Cushion Division ter 24 Total Requirement 4. Review your answers for Requirements 1, 2 and 3. What is the best option for Coley Company? apter 25 The best option for Coley is Chapter 25 By having the Chair Division purchase the cushions from an outside vendor, the company would generate in total contribution margin than if the division purchases cushions internally Requirements. Assume the Cushion Division has capacity of 2000 cushions per quarter and can continue to supply its outside customers with 1,000 cushions per quarter and supply the Cha ise with 1000 cushions per quarter What transfer price should Coley Company se? Explain your reasoning Using the them the Chapter 25 Choose from any to enter any number in the inputtels and then continue to the next question Chapter 20 (Click the icon to view additional information) Centralized, and divisions are considered invesument ision that manufactures oak dining room chairs with The Chair Division cuts, assembles, and finishes the ases and attaches the seat cushions Read the requirements More Info eth Jat is the total Bach The Chair Division Currently purchases the cushions for $26 from an outside vendor. The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company The Chair Division currently sells 1,000 chairs per quarter, and the Cushion Division is operating at capacity, which is 1,000 cushions per quarter. The two divisions report the following information: $ Chair Division Sales Price per Chair Variable Cost (other than cushion) Variable Cost cushion) Contribution Margin per Chair 22 Cushion Division Sales Price per Cushion Variable Cost per Cushion 80 40 lew yor $ 14 Coley is Contribution Margin per Cushion Division Internal Print Done n than if the division ssume the Cushion Division has capacity of 2,000 cushions per quarter and can continue to supply its outside customers with 1,000 cushions upply the Chair Division with 1.000 cushions per quarter. What transfer price should Coley Company set? Explain your reasoning. Using the list or enter any number in the innut fields and then rantinis in the na t
