Madison Printers operates a printing press with a monthly capacity of 2,400 machine-hours. Madison has two main customers: Vincent Corporation and Leanne Corporation. Data on each customer for Jar (Click to view the data.) (Click the icon to view the special order information.) Read the requirements. Requirements Data table Vincent Corporation Leanne Corporation Total Revenues Variable costs $ 162,000 $ 108,000 $ 86,400 75,000 Contribution margin 75,600 33,000 Fixed costs (allocated) 60,000 40,000 108,600 100,000 $ 15,600 $ (7,000) $ 8,600 Operating income Machine-hours required 1,800 hours 600 hours 2,400 hours Print Done What action should Madison take to maximize its operating income? Show your calculations. What other factors should Madison consider before making a decision? 270,000 161,400 More info Leanne Corporation indicates that it wants Madison to do an additional $108,000 worth of printing jobs during February. These jobs are identical to the existing business Madison did for Leanne in January in terms of variable costs and machine-hours required. Madison anticipates that the business from Vincent Corporation in February will be the same as that in January. Madison can choose to accept as much of the Vincent and Leanne 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 6. Madison Printers operates a printing press with a monthly capacity of 2,400 machine-hours. Madison has two main customers: Vincent Corporation and Leanne Corporation. Data on each customer for January are: 1(Click to view the data.) 2(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. (1) Contribution margin per machine- hour Since the (2) Vincent Corporation of Leanne is (3). Leanne Corporation than the (4) of Vincent, to maximize operating income Madison should first allocate the capacity needed to take all of the (5). Corporation business and then allocate the remaining to (6) Corporation. Now calculate the operating income using the allocation you determined above. (7) x Machine-hours to be worked (8) (9) Operating income Vincent Corporation Leanne Corporation Total