What actions should Arlington take to maximize its operating income?

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Arlington Printers operates a printing press with a monthly capacity of 4,000 machine-hours. Arlington has two main customers. Trent Corporation and Kimberly Corporation. Data on each customer for January are: (Click to view the data.) i (Click the icon to view the special order information.) Read the requirements Requirements Begin by calculating the amount that should be used to determine the allocation. What action should Arlington take to maximize its operating income? Show your calculations. What other factors should Arlington consider before making a decision? Trent Corporation Kimberly Corporation Revenue - x Data table More info Total Trent Kimberly Corporation Corporation $ 240,000 $ 160,000 $ 102,000 98,000 Revenues 400,000 200,000 Variable costs Kimberly Corporation indicates that it wants Arlington to do an additional $160,000 worth of printing jobs during February. These jobs are identical to the existing business Arlington did for Kimberly in January in terms of variable costs and machine-hours required. Arlington anticipates that the business from Trent Corporation in February will be the same as that in January. Arlington can choose to accept as much of the Trent and Kimberly business for February as its capacity allows. Assume that total machine-hours and fixed costs for February will be the same as in January Contribution margin 138,000 96,000 62,000 64.000 200,000 160,000 Fixed costs (allocated) $ 42,000 $ (2,000) $ 40,000 Operating income Machine-hours required 3,000 hours 1,000 hours 4,000 hours Print Done Print Done Help me solve this Etext pages Get more help Check answe