The Dution Company is decentralized, and divisions are considered investment centers. Dutton has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division cuts, assembles, and fishes the oak chairs and then purchases and attaches the seat cushions Click the icon to view additional information.) Read the requirements HD Number of units Contribution margini per unit Total contribution margin Chair Division Gustion Division To Requirement 2. Assume the Chair Division purchases the 1.800 cushions needed from the Cushion Division at its sales price What is the total contribution margin for each division and the company Number of units Contribution margin per unit - Total contribution margin Char Division Cushion Division Total Requirement 3. Assume the Chair Division purchases the 1.800 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company (Enter er for Number of units Corbution margin perunt Total contribution margin Char Division Cushion Division To Etext pages Calculator SHOWS ons Requirements on mar 300 cus 1. Determine the total contribution margin for Dutton Company for the quarter. 2. Assume the Chair Division purchases the 1,800 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 1,800 cushions needed from the Cushion Division at its current variable cost. What is the total contbbution 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 3,600 cushions per quarter and can continue to supply its outside customers with 1,800 cushions per quarter and also supply the Chair Division with 1,800 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 Jeach division and the company? tion man -800 cus r each division and the company? (Enter "O" for any ution mar Print Done Requirement 4. Review your answers for Requirements 1, 2 and 3. What is the best option for Dutton Company? The best option for Dutton 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 Internal Requirement 5. Assume the Cushion Division has capacity of 3,600 cushions per quarter and can continue to supply its outside customers with 1,800 cushions per quarter and also supply the Chair Divi What transfer price should Dutton Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter Dutton Company should not 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 Contribution margin per unit Chair Division Cushion Division extemal Cushion Division--internal Total Etext pages Calculator Requirement 4. Review your answers for Requirements 1, 2 and 3. What is the best option for Dutton Company The best option for Dution is In than if the division purchases cushions intematy with 1,800 cushions per quarter and also supply the Chair Divis bution margin for the quarter. By having the Chair Division Requirement 5. Assume the the current scenario (Requirement 1) What transfer price should DL Dution Company should sett for the Chair Division to purchase cushions internally at the current sales price (Requirement 2 for the Chair Division to purchase cushions internally at the current variable cost(Requirement 3) Using the transfer price you deser WW WWWww Number of units Contribution margin per unit - Total contribution margin Chair Division Cushion Division external Cushion Division-mal Total Etext pages Calculator Gm Requirement 4. Review your answers for Requirements 1, 2 and 3. What is the best option for Dutton Company? The best option for Dutton is In total contribution margin than the division purchases cushions internally By having the Chair Division purchase the cushions from an outside vendor, the company would generate Requirement 5. Assume the Cushion Division has capacity of 3,600 cushions per quarter and can continua What transfer price should Dutton Company set? Explain your reasoning. Using the transfer price you dete Dution Company should set the transfer price at because the Char Division would not be iside customers with 1.800 cushions per quarter and also supply the Chair the total contribution margin for the quarter less than more Total contribution margin Using the transfer price you determined, calculate the total contribution margin for the quarter Number of units Contribution margin per unit Chair Division Cushion Division-external Cushion Division-Internal Total Etext pages Calculator at cushions Requirements ts 1, 2, and 3. om an outside ve shions intemally 1. Determine the total contribution margin for Dutton Company for the quarter, 2. Assume the Chair Division purchases the 1,800 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 1,800 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 3,600 cushions per quarter and can continue to supply its outside customers with 1.800 cushions per quarter and also supply the Chair Division with 1,800 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 d also supply the Chair Division with 1.800 cushions per Bacity of 3,600 ain your reason beca total contribution Contrib Print Done More info ou The Chair Division currently purchases the cushions for $20 from an outside vendor. The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company. The Chair Division currently sells 1,800 chairs per quarter, and the Cushion Division is operating at capacity, which is 1,800 cushions per quarter. The two divisions report the following information: Chair Division Cushion Division Sales Price per Chair $ 110 Sales Price per Cushion $ 30 Variable Cost (other than cushion) 40 Variable Cost per Cushion 15 20 Variable Cost (cushion) $ 50 $ 15 Contribution Margin per Chair Contribution Margin per Cushion 1.4 ision and the company? ribu ne 1.1 Print Done ivision and the company (Enter"0" ntrib