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Please do every requirement, Thanks Main Printers operates a printing press with a monthly capacity of 4,000 machine-hours. Main has two main customers: Steven Corporation
Please do every requirement, Thanks
Main Printers operates a printing press with a monthly capacity of 4,000 machine-hours. Main has two main customers: Steven Corporation and Allison Corporation. Data on each customer for January are: BE (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. Steven Corporation Allison Corporation 0 More Info i Data Table Total Steven Corporation $ 240,000 $ 114,000 Allison Corporation 160,000 $ 102,000 Allison Corporation indicates that it wants Main to do an additional $160,000 worth of printing jobs during February. These jobs are identical to the existing business Main did for Allison in January in terms of variable costs and machine-hours required. Main anticipates that the business from Steven Corporation in February will be the same as that in January. Main can choose to accept as much of the Steven and Allison business for February as its capacity allows. Assume that total machine-hours and fixed costs for February will be the same as in January Revenues 126,000 90,000 Variable costs Contribution margin Fixed costs (allocated) Operating income Machine-hours required 58,000 60,000 (2,000) $ 400,000 216,000 184,000 150,000 34,000 Print Done $ 36,000 $ 3,000 hours 1,000 hours 4,000 hours Print Done i Requirements What action should Main take to maximize its operating income? Show your calculations. What other factors should Main consider before making a decision? Print prin Done DoneStep by Step Solution
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