80.2K

Verified Solution

Link Copied!

Begin by calculating the amount that should be used to determine the allocation. Since the (2) of Anne is (3) than the (4) of Robertson, to maximize operating income Park should first allocate the capacity needed to take all of the (5) Corporation business and then allocate the remaining to (6) Corporation. Now calculate the operating income using the allocation you determined above. What other factors should Park consider before making a decision? (Select all that apply.) A. Park's managers need to consider long-run effects of their decision and then decide whether it should accept one company's business at the cost of the other. C. Will both corporations continue to demand the same level of business going forward? E. If Park turns down one of the company's business, will that company continue to place orders with Park or seek alternative suppliers? F. Choosing customers is a strategic decision that should primarily involve the analysis of the short-term effects of making a decision. G. Will turning down the business of one company affect customer satisfaction? fixed costs for February will be the same as in January. 3: Requirements What action should Park take to maximize its operating income? Show your calculations. What other factors should Park consider before making a decision? (1) (8) $\begin{array}{lll}& \text{ Revenue per machine-hour }& \text{ (9) }\\ \text{ Contribution margin }& \text{ Variable cost per machine-hour }& \text{ Contribution margin }\\ \text{ \_ Contribution margin per machine-hour }& & \text{ Contribution margin per machine-hour }\\ \text{ \_ Fixed costs }& & \text{ Variable cost per machine-hour }\\ \text{ Fixed costs }\end{array}$

Answer & Explanation Solved by verified expert

See Answer