Madison Printers operates a printing press with a monthly capacity of 3,000 rrachine-hours. Madison has two main customers: Peter Corporation and Kimberly Corporation. Data on each customer for January are: EE! (Click to view the data.) A (Click the icon to view the special order information.) Read the requirements Peter Corporation Kimberly Corporation than the of Peter, to maximize operating income Madison should first allocate the capacity needed to take all of the 7 Since the of Kimberly is Corporation business and then allocate the remaining to Corporation Now calculate the operating income using the allocation you determined above Peter Corporation Kimberly Corporation Total * Machine-hours to be worked Operating income What other factors should Madison consider before making a decision? (Select all that apply.) A. Will both corporations continue to demand the same level of business going forward? B. Will turning down the business of one company affect customer satisfaction? 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 greatest profit, then Madison does not need to be concerned about turning down the business of the other company. E. Choosing customers is a strategic decision that should primarily involve the analysis of the short-term effects of making a decision. OF. If Madison turns down one of the company's business, will that company continue to place orders with Madison or seek alterative suppliers? G. 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. Data table Total Peter Kimberly Corporation Corporation $ 180,000 $ 120,000 $ 56,250 69,000 Revenues 300,000 125,250 Variable costs Contribution margin 123,750 84,000 51,000 56,000 174,750 140,000 Fixed costs (allocated) $ 39,750 $ (5,000) $ 34,750 Operating income Machine-hours required 2,250 hours 750 hours 3,000 hours Print Done More info Kimberly Corporation indicates that it wants Madison to do an additional $120,000 worth of printing jobs during February. These jobs are identical to the existing business Madison did for Kimberly in January in terms of variable costs and machine-hours required. Madison anticipates that the business from Peter Corporation in February will be the same as that in January. Madison can choose to accept as much of the Peter and Kimberly 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 Requirements What action should Madison take to maximize its operating income? Show your calculations. What other factors should Madison consider before making a decision? Print Done