Park Printers operates a printing press with a monthly capacity of 2,400 machine-hours. Park has two main customers: Robertson Corporation and Anne Corporation. Data on each customer for January are: Paper size | Letter Prin (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. Robertson Corporation Anne Corporation (1) Since the (2) of Anne is (3) than the (4) of Robertson, to maximize operating income Park 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. Robertson Corporation Anne Corporation Total (7) x Machine-hours to be worked (8) (9) Operating income What other factors should Park consider before making a decision? (Select all that apply.) A. Park'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. B. If Park sees long-run benefit in working with the company that provides the least profit, then Park must also look for ways to increase the profitability of the business it does with that company. C. Will both corporations continue to demand the same level of business going forward? D. If Park sees long-run benefit in working with the company that provides the greatest profit, then Park does not need to be concerned about turning down the business of the other company. WE. If Park turns down one of the company's business, will that company continue to place orders with Park or seek alternative suppliers? OF. Choosing customers is a strategic decision that should primarily involve the analysis of the short-term effects of making a decision. G. Will turning down the business of one company affect customer satisfaction?1: Data Table Robertson Anne Corporation Corporation Total Revenues $ 153,000 $ 102,000 $ 255,000 Variable costs 73,800 66.000 139,800 Contribution margin 79,200 36,000 115,200 Fixed costs (allocated) 60,000 40,000 100,000 19,200 $ (4,000) $ 15,200 Operating income Machine-hours required 1,800 hours 600 hours 2,400 hours 2: More Info Anne Corporation indicates that it wants Park to do an additional $102,000 worth of printing jobs during February. These jobs are identical to the existing business Park did for Anne in January in terms of variable costs and machine-hours required. Park anticipates that the business from Robertson Corporation in February will be the same as that in January. Park can choose to accept as much of the Robertson and Anne business for February as its capacity allows. Assume that total machine-hours and fixed costs for February will be the same as in January. 3: Requirements What action should Park take to maximize its operating income? Show your calculations. What other factors should Park consider before making a decision? (1) O O Revenue (2) O contribution margin revenue per machine-hour (3) O greater O Contribution margin per machine-hour O Revenue per machine-hour OOO contribution margin per machine-hour O variable cost O less O Contribution margin O Variable cost operating income O variable cost per machine-hour Operating income O Variable cost per machine-hour revenue (4) O contribution margin revenue per machine-hour (5) O Anne (6) O Anne (7) O Revenue per machine-hour OO contribution margin per machine-hour variable cost O Robertson Robertson O Contribution margin O Variable cost per machine-hour OO operating income O variable cost per machine-hour O Contribution margin per machine-hour revenue O Fixed costs (8) O Revenue per machine-hour (9) O O Revenue per machine-hour O Contribution margin O Variable cost per machine-hour O Contribution margin O Variable cost per machine-hour Contribution margin per machine-hour O Contribution margin per machine-hour O Fixed costs Fixed costs