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THIS IS THE FULL QUESTION Newbury Printers operates a printing press with a monthly capacity of 2,400 machine-hours. Newbury has two main customers: Peter Corporation
THIS IS THE FULL QUESTION
Newbury Printers operates a printing press with a monthly capacity of 2,400 machine-hours. Newbury has two main customers: Peter Corporation and Anne Corporation. Data on each customer for January are: E (Click to view the data) a (Click the icon view the special order information.) Read the requirements. Begin by calculating the amount that should be used to determine the allocation. Peter Corporation Anne Corporation Requirements What action should Newbury take to maximize its operating income? Show your calculations. What other factors should Newbury consider before making a decision? Print Done Choose from any list or enter any number in the input fields and then click Check Answer. parts emaining Clear All Read the reguirements O More Info i Data Table Anne Corporation indicates that it wants Newbury to do an additional $120,000 worth of printing jobs during February. These jobs are identical to the existing Peter Corporation Total Anne Corporation business Newbury did for Anne in January in terms of variable costs and machine-hours required. Newbury anticipates that the business from Peter Corporation in February will be the same as that in January. Newbury can choose to accept as much of the Peter 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. Revenues 180,000 S 120,000 $ 300,000 90,000 81,000 171,000 Variable costs Contribution margin 90.000 39,000 129,000 100,000 60,000 40,000 Fixed costs (allocated) 30,000 $ (1,000) S 29,000 Operating income Print Done 1,800 hours 600 hours 2,400 hours Machine-hours required Print DoneStep by Step Solution
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