i More Info Allison Corporation indicates that it wants Blossom to do an additional $90,000 worth of printing jobs during February. These jobs are identical to the existing business Blossom did for Allison in January in terms of variable costs and machine-hours required. Blossom anticipates that the business from Scott Corporation in February will be the same as that in January. Blossom can choose to accept as much of the Scott and Allison 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 Blossom Printers operates a printing press with a monthly capacity of 2,000 machine-hours. Blossom has two main customers: Scott Corporation and Allison Corporation. Data on each customer for January are: (Click to view the data.) (Click the icon to view the special order information.) Read the requirements. Begin by calculating the amount that should be used to determine the allocation. Scott Corporation Allison Corporation V of Scott, to maximize operating income Blossom should first allocate the capacity needed to take all of the Since the of Allison is V than the Corporation business and then allocate the remaining to Corporation. Now calculate the operating income using the allocation you determined above. Scott Corporation Allison Corporation Data Table Total Total x Machine-hours to be worked Scott Allison Corporation Corporation $ 135,000 $ 90,000 $ 72,000 62,500 Revenues 225,000 134,500 Variable costs Contribution margin 63,000 90,500 Operating income Fixed costs (allocated) 54,000 27,500 36,000 (8,500) $ 90,000 9,000 $ 500 What other factors should Blossom co Requirements Operating Income Machine-hours required 1,500 hours 500 hours 2,000 hours A. Will turning down the business B. If Blossom sees long-run bene Print Done What action should Blossom take to maximize its operating income? Show your calculations. What other factors should Blossom consider before making a decision? Choose from any list or enter any nu What other factors should Blossom consider before making a decision? (Select all that apply.) A. Will turning down the business of one company affect customer satisfaction? B. If Blossom sees long-run benefit in working with the company that provides the least profit, then Blossom must also look for ways to increase the profitability of the business it does with that company. C. Will both corporations continue to demand the same level of business going forward? D. If Blossom sees long-run benefit in working with the company that provides the greatest profit, then Blossom does not need to be concerned about turning down the business of the other company. E. If Blossom turns down one of the company's business, will that company continue to place orders with Blossom or seek alternative suppliers? F. Choosing customers is a strategic decision that should primarily involve the analysis of the short-term effects of making a decision. G. Blossom's managers need to consider long-run effects of their decision and then decide whether it should accept one company's business at the cost of the other. i More Info Allison Corporation indicates that it wants Blossom to do an additional $90,000 worth of printing jobs during February. These jobs are identical to the existing business Blossom did for Allison in January in terms of variable costs and machine-hours required. Blossom anticipates that the business from Scott Corporation in February will be the same as that in January. Blossom can choose to accept as much of the Scott and Allison 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 Blossom Printers operates a printing press with a monthly capacity of 2,000 machine-hours. Blossom has two main customers: Scott Corporation and Allison Corporation. Data on each customer for January are: (Click to view the data.) (Click the icon to view the special order information.) Read the requirements. Begin by calculating the amount that should be used to determine the allocation. Scott Corporation Allison Corporation V of Scott, to maximize operating income Blossom should first allocate the capacity needed to take all of the Since the of Allison is V than the Corporation business and then allocate the remaining to Corporation. Now calculate the operating income using the allocation you determined above. Scott Corporation Allison Corporation Data Table Total Total x Machine-hours to be worked Scott Allison Corporation Corporation $ 135,000 $ 90,000 $ 72,000 62,500 Revenues 225,000 134,500 Variable costs Contribution margin 63,000 90,500 Operating income Fixed costs (allocated) 54,000 27,500 36,000 (8,500) $ 90,000 9,000 $ 500 What other factors should Blossom co Requirements Operating Income Machine-hours required 1,500 hours 500 hours 2,000 hours A. Will turning down the business B. If Blossom sees long-run bene Print Done What action should Blossom take to maximize its operating income? Show your calculations. What other factors should Blossom consider before making a decision? Choose from any list or enter any nu What other factors should Blossom consider before making a decision? (Select all that apply.) A. Will turning down the business of one company affect customer satisfaction? B. If Blossom sees long-run benefit in working with the company that provides the least profit, then Blossom must also look for ways to increase the profitability of the business it does with that company. C. Will both corporations continue to demand the same level of business going forward? D. If Blossom sees long-run benefit in working with the company that provides the greatest profit, then Blossom does not need to be concerned about turning down the business of the other company. E. If Blossom turns down one of the company's business, will that company continue to place orders with Blossom or seek alternative suppliers? F. Choosing customers is a strategic decision that should primarily involve the analysis of the short-term effects of making a decision. G. Blossom's managers need to consider long-run effects of their decision and then decide whether it should accept one company's business at the cost of the other