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The Ricci Company is decentralized, and divisions are considered investment centers. Ricci has Kone division that manufactures oak dining room chairs with upholstered seat
The Ricci Company is decentralized, and divisions are considered investment centers. Ricci has Kone 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 Requirement 1. Determine the total contribution margin for Ricci Company for the quarter. Chair Division Number of units Contribution margin per unit (Click the icon to view additional information.) Read the requirements Total contribution margin Cushion Division Total Requirement 2. Assume the Chair Division purchases the 800 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company? Chair Division Cushion Division Total Number of units Contribution margin per unit Total contribution margin Requirement 3. Assume the Chair Division purchases the 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 "0" for any zero amounts.) Total contribution margin Number of units Contribution margin per unit Chair Division Cushion Division Total
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