The Blossom Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market. Division B currently uses this sub-assembly for a final product that is sold outside at $1,488. Division A charges Division B the market price of $868 per unit of the part. Unit variable costs are $644 and $744 for Divisions A and B, respectively. The manager of division B feels that division A should transfer the part at a lower price than market because, at market, division B is unable to make a profit. Required:
Calculate division B's contribution margin if transfers are made at the market price, and calculate the company's total contribution margin.