justabeachbum
08.07.2019 •
Business
Rodeo printers operates a printing press with a monthly capacity of 3 comma 000 machine-hours. rodeo has two main customers: peter 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. peter corporation margaret corporation contribution margin per machine-hour $55 $66 since the contribution margin per machine-hour of margaret is greater than the contribution margin per machine-hour of peter, to maximize operating income rodeo should first allocate the capacity needed to take all of the margaret corporation business and then allocate the remaining to peter corporation. now calculate the operating income using the allocation you determined above.
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