E11-31 (similar to) Madison Printers operates a printing press with a monthly capacity of 3,000 machine-hours. Madison has two main customers: Timothy Corporation and Lisa Corporation Data on each customer for January are (Click the icon to view the special order intormation ) EEB (Cick to view the data) Read the requirements Begin by calculating the amount that should be used to determine the allocation Lisa Corporation Timothy Corporation Data Table Total Lisa Corporation Timothy Corporation 127,500 $ 76,500 318,750 191,250 S 65,250 Revenues 141,750 Variable costs 177,000 51,000 126,000 Contribution margin 160,000 64,000 96,000 Fixed costs (allocated) 17,000 (13,000) S 30,000 S $ Operating income 3,000 hours 750 hours 2,250 hours Machine-hours required Done Print X X More Info Cd Lisa Corporation indicates that it wants Madison to do an additional $127,500 worth of printing jobs during February. These jobs are identical to the existing business Madison did for Lisa in January in terms of variable costs and machine-hours required. Madison anticipates that the business from Timothy Corporation in February will be the same as that in January. Madison can choose to accept as much of the Timothy and Lisa business for February as its capacity allows. Assume that total machine-hours and fixed costs for February will be the same as in January Print Done i Requirements What action should Madison take to maximize its operating income? Show your calculations. What other factors should Madison consider before making a decision? Done Print