The Coley Company is decentralized, and visions are considered investment centers. Coley has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division, bles, and finishes the oak chairs and then purchases and attaches the seat cushions. Click the icon to view additional information) Read the Requirement 1. Determine the total corbution margin for Coley Company for the quarter. Number of units * Contribution margin perunt Total con margin Chair Division Cushion Division Total Requirement 2. Assume the Chair Division purchases the 500 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 * Contribution margin perunt - Total contribution Chair Division Cushion Division Total Requirements. Assume the Chair Division purchase the 500 cuined from the Cushion Division is the cost. What is the total contribution margin to each and the company or your Number of Char Division Cushion Division Choose from any list or to any number in the inputs and then continue to the newestion to View additional information.) nions. The Chair Division cuts, assembles, and finishes ns. Read the requirements. ey Company for the quarter nd 0 More Info 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 500 chairs per quarter, and the Cushion Division is operating at capacity, which is 500 cushions per quarter. The two divisions report the following information: cus Hivis on Chair Division 110 Cushion Division Sales Price per Cushion Variable Cost per Cushion $ Sales Price per Chair Variable Cost (other than cushion) 30 45 14 26 Variable Cost (cushion) 39 $ 16 O cus Contribution Margin per Chair Contribution Margin per Cushion h divi tion Print Done 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 Click the icon to view additional information) the oak chairs and then purchases and attaches the seat cushions Read the rements Requirement 2. Assume the Chair Division purchases the 500 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 Contribution margin per unit Total contribution margin Chair Division x Cushion Division X X Total Requirement 3. Assume the Chair Division purchases the 500 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company? (Entero Number of units X Contribution margin per unit Total contribution margin X 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 Requirement 5. Assume the transfer price should Coley the current scenario (Requirement 1). for the Chair Division to purchase cushions internally at the current ales price (Requirement 2) for the Chair Division to purchase cushions Internally the current variable cost(Requirement 3). argin than the division purchases cushions internally ors with 500 cushions per quarter and also supply the Chair Division with 500 cushion n margin for the quarter 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 investments Coley hasone division that manufactures cal dining room chairs with upholstered to cushions. The Char Division cuts, assemblies, and the the oak chairs and then purchases and attaches the seat cushions (Click the loon to view con formation) Read the requirements Requirements. Asume the Chair Division purchase the 100 chions needed from the Cushion Division is current variable cost. What is the contribution margin for each division and the company Emer for any zoomors Number of its * Contribution margin perunt . Tal contribution margin Chair Division Cushion Division Total Requirement. Review your answers for Regiment 1, 2 and 3. What is the best option for Coley Company The best option for Clay By having the Char Division purchase the cushions from an de vender the company were in contribution margin than the division purchschnally Requirements. As the Cushion Division has capacity of 1,000 cushions per renda continue to side customers with cushions per and to be the Char Division to per quanto What transfer price should Coley Company wel? Explain your resoning Using the retur price you demine, care a contribution margin for the Coley Company should be the price the price for which can purchase the custom de vendor the price for which he hon Divisionele consecutomer LU Choose from any stronterany number in the routes and then continue to the rest on 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 outs, assembles, and finishes the oak chairs and then purchases and aches the seat cushions Click the icon to ve additional information Cushion Division Total Requirement 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Callery 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 Requirements. Assume the Cushion Division has capacity of 1,000 cushions per quarter and can continue to supply the tide customers with socions per quarter and to the Chair Division we cushions per quare 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 ats because the Chair Division would not be willing to pay more than Using the transfer price you determined, calculate the total contribution margin for the quarter Number of units Contribution margin per unit - Total contribution margin Char Division Cushion Division external Cushion Divisional Total Choose from any list or enter any number in the input fields and then continue to the next