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Madison Printers operates a printing press with a monthly capacity of 4,000 machine-hours. Madison has two main customers: Paul Corporation and Julie Corporation. Data on
Madison Printers operates a printing press with a monthly capacity of 4,000 machine-hours. Madison has two main customers: Paul Corporation and Julie Corporation. Data on each customer for January are: B (Click to view the data.) i (Click the icon to view the special order information.) - X Data Table Read the requirements. Begin by calculating the amount that should be used to determine the allocation. Total Paul Corporation 255000 Julie Corporation 170000 Paul Corporation $ 255,000 $ 105,000 Julie Corporation 170,000 $ 104,000 Contribution margin per machine-hour Revenues 425,000 209,000 Variable costs Contribution margin 150,000 102,000 66,000 68,000 216,000 170,000 Fixed costs (allocated) $ 48,000 $ (2,000) $ 46,000 Operating income Machine-hours required 3,000 hours 1,000 hours 4,000 hours Choose from any list or enter any number in the input fields and then click Check Answer Drin Julie Corporation indicates that it wants Madison to do an additional $170,000 worth of printing jobs during February. These jobs are identical to the existing business Madison did for Julie in January in terms of variable costs and machine-hours required. Madison anticipates that the business from Paul Corporation in February will be the same as that in January. Madison can choose to accept as much of the Paul and Julie business for February as its capacity allows. Assume that total machine-hours and fixed costs for February will be the same as in January
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