Cushion Division Chair Division Sales Price per Chair Variable Cost (other than cushion) Variable Cost...
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Cushion Division Chair Division Sales Price per Chair Variable Cost (other than cushion) Variable Cost (cushion) $22 Sales Price per Cushion Variable Cost per Cushion Contribution Margin per $100 10 35 18 Contribution Margin per Chair $47 Cushion $12 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 900 chairs per quarter, and the Cushion Division is operating atcapacity, which is 900 cushions per quarter. The two divisions report the following information: Th e Conti Company is decentralized, and divisions are considered investment centers Conti 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
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