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onsider again the scenario where CG enters the catalog market for the long haul and expects machine usage to increase from 3,000 hours to 4,000

onsider again the scenario where CG enters the catalog market for the long haul and expects machine usage to increase from 3,000 hours to 4,000 hours per year. The firm's accountant argues that the catalogs are consuming capacity and must be charged for it. In addition, while existing personnel can handle some of the work associated with printing catalogs, more people need to be hired, increasing the cost of support staff by $250,000. Assume that the "support capacity" provided by the total $2,250,000 will be fully utilized once the catalog comes online. How much of this capacity should be allocated to catalogs and how much to magazines? Based on this calculation, estimate the cost of idle support capacity being paid by CG before the introduction of magazines.

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