The Greco Company is decentralized, and divisions are considered investment centers. Greco 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 Greco Company for the quarter. Number of units Contribution margin per unit Total contribution margin Chair Division Cushion Division Total More Info Requirement 2. Assume the Chair Division purchases the 1,200 cushions needed from the Cushion Division Number of units Contribution margin per unit Total contribution ml Chair Division Cushion Division The Chair Division currently purchases the cushions for $18 from an outside vendor. The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company The Chair Division currently sells 1,200 chairs per quarter, and the Cushion Division is operating at capacity, which is 1,200 cushions per quarter. The two divisions report the following information: Total Chair Division Requirement 3. Assume the Chair Division purchases the 1,200 cushions needed from the Cushion Division for any zero amounts.) $ 100 Cushion Division Sales Price per Cushion Variable Cost per Cushion $ 32 Number of units Contribution margin per unit = Sales Price per Chair Variable Cost (other than cushion) Variable Cost cushion) Total contribution m 55 11 Chair Division 18 Cushion Division X S 27 $ 21 Contribution Margin per Chair Contribution Margin per Cushion Total Requirement 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Greco Comg Print Done The best option for Greco is By having the Chair Division purchase the cushions from an outside vendor, the company would generate v in total contribution margin than if the division purchases cushions internally. Requirement 5. Assume the Cushion Division has capacity of 2,400 cushions per quarter and can continue to supply its outside customers with 1,200 cushions per quarter and also supply the Chair Division with 1,200 cushions per quarter. What transfer price should Greco Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Greco Company should set the transfer price at $ because the Chair 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. (Click the icon to view additional information.) The Greco Company is decentralized, and divisions are considered investment centers. Greco 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 Greco Company for the quarter. Number of units Contribution margin per unit Total contribution margin Chair Division Cushion Division Total Requirement 2. Assume the Chair Division purchases the 1,200 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 Cushion Division Total Requirement 3. Assume the Chair Division purchases the 1,200 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company? (Enter "0" for any zero amounts.) Number of units Contribution margin per unit = Total contribution margin Chair Division x = Cushion Division = Total Requirement 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Greco Company? The best option for Greco 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 2,400 cushions per quarter and can continue to supply its outside customers with 1,200 cushions per -----.......Lan... INILE -------------- Choose from any list or enter any number in the input fields and then continue to the next question. 0 A (Click the icon to view additional information.) The Greco Company is decentralized, and divisions are considered investment centers. Greco 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. Cushion Division Read the requirements. Total Requirement 3. Assume the Chair Division purchases the 1,200 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company? (Enter "0" for any zero amounts.) Number of units 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 Greco Company? The best option for Greco is argin than if the division By having the Chair Division purchases cushions internall Requirement 5. Assume the quarter and also supply the transfer price you determined, the current scenario (Requirement 1). 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). grow Yor. ers with 1,200 cushions per r reasoning. Using the Greco Company should set the transfer price at $ 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 Y Contribution margin per unit Total contribution margin Chair Division Cushion Division-external Cushion Division-internal X Total Choose from any list or enter any number in the input fields and then continue to the next question. (Click the icon to view additional information.) The Greco Company is decentralized, and divisions are considered investment centers. Greco 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. Cushion Division Read the requirements Total Requirement 3. Assume the Chair Division purchases the 1,200 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company? (Enter "0" for any zero amounts.) Number of units Contribution margin per unit Total contribution margin Chair Division x Cushion Division Total Requirement 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Greco Company? The best option for Greco is v in total contribution margin than if the division By having the Chair Division purchase the cushions from an outside vendor, the company would generate purchases cushions internally. Requirement 5. Assume the Cushion Division has capacity of 2,400 cushions per quarter and can continu quarter and also supply the Chair Division with 1,200 cushions per quarter. What transfer price should Gre transfer price you determined, calculate the total contribution margin for the quarter. less outside customers with 1,200 cushions per t? Explain your reasoning. Using the more Greco Company should set the transfer price at $ 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 X Contribution margin per unit Total contribution margin Chair Division Cushion Division-external Cushion Division-internal = Total Choose from any list or enter any number in the input fields and then continue to the next question. (Click the icon to view additional information.) The Greco Company is decentralized, and divisions are considered investment centers. Greco 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. Cushion Division Read the requirements Total Requirement 3. Assume the Chair Division purchases the 1,200 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 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 Greco Company? The best option for Greco 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 2,400 cushions per quarter and can continue to supply its outside customers with 1,200 cushions per quarter and also supply the Chair Division with 1,200 cushions per quarter. What transfer price should Greco Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Greco Company should set the transfer price at $ because the Chair Division would not be willing to pay more than on margin the price for which it can purchase the cushions from an outside vendor. the price for which the Cushion Division can sell the cushions to outside customers. Chair DIVISION Cushion Division-external Cushion Division-internal Total Choose from any list or enter any number in the input fields and then continue to the next question. 0 (Click the icon to view additional information.) The Greco Company is decentralized, and divisions are considered investment centers. Greco 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. Cushion Division Read the requirements Total Requirement 3. Assume the Chair Division purchases the 1,200 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division Requirements Number of - X Chair Division Cushion Division Total Requirement 4. Review your answer The best option for Greco is 1. Determine the total contribution margin for Greco Company for the quarter. 2. Assume the Chair Division purchases the 1,200 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 1,200 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 Greco Company? 5. Assume the Cushion Division has capacity of 2,400 cushions per quarter and can continue to supply its outside customers with 1,200 cushions per quarter and also supply the Chair Division with 1,200 cushions per quarter. What transfer price should Greco Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter By having the Chair Division purchas purchases cushions internally. Requirement 5. Assume the Cushio quarter and also supply the Chair Diy transfer price you determined, calcul Jon margin than if the division istomers with 1,200 cushions per n your reasoning. Using the Greco Company should set the trang Using the transfer price you determin Print Done