Madison Printers operates a printing press with a monthly capacity of 3,200 machine-hours. Madison has two main customers: Paul Corporation and Jessica Corporation. Data on each customer for January are: (Click to view the data.) (Click the icon to view the special order information.) Data Table X i Requirements Total Paul Jessica Corporation Corporation $ 168,000 $ 112.000 $ 67,200 68,000 What action should Madison take to maximize its operating income? Show your calculations. What other factors should Madison consider before making a decision? Revenues 280,000 135,200 Variable costs Print Done Contribution margin 100,800 84.000 44,000 56,000 144.800 140,000 Fixed costs (allocated) i More Info $ 16,800 $ (12,000) $ 4,800 Operating income Machine-hours required 2,400 hours 800 hours 3,200 hours Print Done Jessica Corporation indicates that it wants Madison to do an additional $112,000 worth of printing jobs during February. These jobs are identical to the existing business Madison for Jessica 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 Jessica business for February as its capacity allows. Assume that total machine-hours and fixed costs for February will be the same as in January Operating income What other factors should Madison consider before making a decision? (Select all that Print Done Choose from any list or enter any number in the input fields and then continue to Madison Printers operates a printing press with a monthly capacity of 3,200 machine-hours. Madison has two main customers: Paul Corporation and Jessica 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. Paul Corporation Jessica Corporation Since the of Jessica is than the of Paul, to maximize operating income Madison should first allocate the capacity needed to take all of the Corporation business and then allocate the remaining to V Corporation. Now calculate the operating income using the allocation you determined above. Paul Corporation Jessica Corporation Total x Machine-hours to be worked Operating income What other factors should Madison consider before making a decision? (Select all that apply.) Madison Printers operates a printing press with a monthly capacity of 3,200 machine-hours. Madison has two main customers: Paul Corporation and Jessica 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, x Machine-hours to be worked Operating income What other factors should Madison consider before making a decision? (Select all that apply.) A. If Madison sees long-run benefit in working with the company that provides the greatest profit, then Madison does not need to be concerned about turning down the business of the other company. B. Choosing customers is a strategic decision that should primarily involve the analysis of the short-term effects of making a decision. C. Madison'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 D. If Madison sees long-run benefit in working with the company that provides the least profit, then Madison must also look for ways to increase the profitability of the business it does with that company. E. Will turning down the business of one company affect customer satisfaction? F. If Madison turns down one of the company's business, will that company continue to place orders with Madison or seek alternative suppliers? G. Will both corporations continue to demand the same level of business going forward