The Greco Company is decentralized, and divisions are considered investment centers. Greco has one division that manufactures oak dining rocm chairs with upholstered seat cushions. The Chair Division cuts, assembiers, and finishes the oak chars and then purchases and attuches the seat cushiors. Requirement 1. Deternine the tolal contribution margin for Gireco Company for the guarter. Requirement 2. Assume the Chair Dision purchases the 1,000 oushions needed from the Cushion Divsion at its current sales price. What is the lotal contribution an tompary? company? (Enias "or tor wiy zere wriviunta ) The Greco Company is decentralzed, and divisions are considered investment centers. Greco has one division that manulactures cak dining room chairs with upholstered seat cushions. The Chair Division ats, assemblos, and frishes the oak, chairs and then purchases and atlaches the seat cushichs. Click the icon to view additional information) Read the requiements. Requirement 4. Review your answere for Requimments 1,2, and 3. What is the best opton for Greco Company? The best option for Greco By having the Char Division purchase the cushions from an cutaide vendor, the company would generate Dision with 1.000 cushions per quanter What trander once ahould Greco Compary sot? Explan your reasoning. Using the transtor prico you determined, caculate the total contreution mavin for The quartar Greso Conpany stiouis set the varatar price at because the Chair oiviron would not be wuling to pay more than Using the transler price you determmed, calculate the total cortbtudion marpin for the quarte. More info 1. Determine tha totat contribution margis for Ceeco Compaty for the quartat. 2. Aasume the Chair Oivision purcheses she 1,000 cuations naaced for the The Chair Division cumenty purchases the cushione for 580 from an ovtside vender the Cuakion Cuation Bvicion at its currort nains proe. What is the beal contibution Divipion manutacturne upholstered seat oushions that ave sola to customere oueside the company. margh for eich divion and the eorpany? The Chair bivision cumberty selbs 1,000 chairs per euarter, and the Cuthion Division is eptrating at capacity, which is 1.000 cushions per quartert. The two divisions report the followho information. 2. Assume the Char Divaion gurchuses the 1.000 eualiona ceeded troe itse Cuthion Divaion at its current variatie coat What as the hotar opriributon nargis flar each division and the cerroany? 4. Peview your answars for Repursments 1,2, and 2. What in she beat coosen for Creco Company? can cintrie to augely is ovtivit customere with 1.000 cuathers ofer quiler and also supply fre Char Dision with 1000 oushiens rer quater. What quarte
