Cole sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data:

The Cole store in Grand Junction, Colorado, has 13,000 square feet of floor space. If Cole emphasizes moderately priced goods, it can display 780 items in the store. If Cole emphasizes designer wear, it can display only 520 designer items. These numbers are also the average monthly sales in units.
Prepare an analysis to show which product the company should emphasize.

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Per Item Moderately Priced $ 79 21 58 Designer Average Sales Price Average Variable Costs Average Contribution Margin Average Fixed Costs (allocated) Average Operating Income $195 85 110 20 90 S 53