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Please help with problem and explain to me how it was solved. Boylston Printers operates a printing press with a monthly capacity of 4,000 machine-hours,
Please help with problem and explain to me how it was solved.
Boylston Printers operates a printing press with a monthly capacity of 4,000 machine-hours, Boylston has two main customers: Steven 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. - X Data Table Steven Corporation Jessica Corporation Total - X More Info Steven Jessica Corporation Corporation $ 285,000 $ 190,000 $ 147,000 128,000 Revenues 475,000 275,000 138,000 96,000 62,000 64,000 200,000 160.000 Variable costs Contribution margin Fixed costs (allocated) ) Operating income Machine-hours required $ 42,000 $ (2,000) $ Jessica Corporation indicates that it wants Boylston to do an additional $190,000 worth of printing jobs during February. These jobs are identical to the existing business Boylston did for Jessica in January in terms of variable costs and machine-hours required. Boylston anticipates that the business from Steven Corporation in February will be the same as that in January. Boylston can choose to accept as much of the Steven 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 40,000 3,000 hours 1,000 hours 4.000 hours Requirements Print Print Done What action should Boylston take to maximize its operating income? Show your calculations. What other factors should Boylston consider before making a decision? Print Done Choose from any list or enter any number in the input fields and then click CheckStep by Step Solution
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