Question: 1. please help Requirements 1. Determine the total contribution margin for Ricci Company for the quarter. 2. Assume the Chair Division purchases the 1,800 cushions

1. please help

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

Requirements 1. Determine the total contribution margin for Ricci 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 Ricci 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 Ricci Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Requirement 2. Assume the Char Dision purchases the 1,800 cushions needed from the Cushion Division at ins current sales price What is the fotal contribution margin for each division and the company? Requirement 3. Assume the Chair Division purchases the 1,800 cushions needed from the Cushion Division at its current variable cost. What is the fotal contribution margin each division and the company? (Enter "0* for any zero amounts.) Requirement 4. Review your answers for Requirements 1, 2, and 3. What is the best option for Ricd Company? The best option for Ricci) By having the Chair Division purchase the cushlons 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 3,600 cushions per quarter and can continue to supply its outaide euslomers with 1 , B00 cuskions per quartor an also supply the Chair Division with 1.800 cushions per quarter. What transfer price should Ricci Company set? Explain your reasoning Using the tranafer price you determined calculate the total contrbution margin for the quarter A ould not be wiling to pay more than The Chair Division currently purchases the cushions for $25 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

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