Rodeo Printers operates a printing press with a monthly capacity of 4,000 machine-hours. Rodeo has two main customers: Scott Corporation and Margaret 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. Scott Corporation Margaret Corporation Contribution margin per machine-hour $ 40 $ 56 Since the of Margaret is than the Corporation. Data table Scott Corporation Margaret Corporation Total Revenues Variable costs $ 255,000 $ 170,000 $ 425,000 135,000 114,000 249,000 Contribution margin 120,000 56,000 176,000 90,000 60,000 Fixed costs (allocated) 150,000 $ 30,000 $ (4,000) $ 26,000 Operating income Machine-hours required 3,000 hours 1,000 hours 4,000 hours Print Done of Scott, to maximize operating income Rodeo should first allocate the capacity needed to take all of the Corporation business and then allocate the remaining to More info Margaret Corporation indicates that it wants Rodeo to do an additional $170,000 worth of printing jobs during February. These jobs are identical to the existing business Rodeo did for Margaret in January in terms of variable costs and machine-hours required. Rodeo anticipates that the business from Scott Corporation in February will be the same as that in January. Rodeo can choose to accept as much of the Scott and Margaret 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