Business, 12.08.2020 19:01 24lbriscoe

The Hobson Company is decentralized, and divisions are considered investment centers. Cutler 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. The Chair Division currently purchases the cushions for $ 26$26 from an outside vendor. The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company. The Chair Division currently sells 1,0001,000 chairs per quarter, and the Cushion Division is operating atcapacity, which is 1,0001,000 cushions per quarter. The two divisions report the following information:
Chair Division Cushion Division
Sales Price per Chair $65
Sales Price per Cushion $32
Variable Cost (other than cushion) 30
Variable Cost per Cushion 11
Variable Cost (cushion) 26
Contribution Margin per Chair $9
Contribution Margin per Cushion $21
Requirement
1. Determine the total contribution margin for
CutlerCutler
Company for the quarter.
Number of units x Contribution margin per unit = Total contribution margin
Chair Division 1000 x 9 = 9000
Cushion Division 1000 x 21 = 21000
Total 30000

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 03:30

In return for their with optimizing his painting project, the castle servant informed poly and digit that he saw someone dressed as the king leaving behind a trail of crumbs as he walked into the jester's room late last night. poly and digit have finally found the crisp-collecting culprit â€” it turns out the jester's shoe size and hair color match the clues that were found! in gratitude, poly and digit agree to the servant with his current task of replacing all of the tables and chairs in the castle. his goal is to determine which furniture company should produce the new furniture. he receives information from a company that customizes elegant furniture, and he wants to analyze the company's production process in order to calculate some problems about cost and availability. read the following scenario, and assist poly and digit as they the servant with his calculations. the fit for a king furniture company requires 2020 hours of labor to produce a standard table, and a chair requires 1212 hours of labor. the labor available is 565565 hours per week. the company can produce at most 3535 chairs per week.

Answers: 1

Answer

Business, 22.06.2019 03:30

Joe finally found a house for sale that he liked. which factor could increase the price of the house he likes? a. both he and the seller each have a real estate agent. b. a home inspector finds faulty wiring in the house. c. the house has been for sale for almost a year. d. several buyers all want that same house.

Answers: 2

Answer

Business, 22.06.2019 10:30

Perez, inc., applies the equity method for its 25 percent investment in senior, inc. during 2018, perez sold goods with a 40 percent gross profit to senior, which sold all of these goods in 2018. how should perez report the effect of the intra-entity sale on its 2018 income statement?

Answers: 2

Answer

Business, 22.06.2019 11:30

Money from an allowance or job is known as .

Answers: 3

Answer

You know the right answer?

The Hobson Company is decentralized, and divisions are considered investment centers. Cutler has one...

Questions