Johnson Company sells both designer and moderately priced jewelry: Top management is deciding which product line to emphasize. Accountants have provided the following data:

The Johnson store in Boise, Idaho, has 10,000 square feet of floor space. If it emphasizes moderately priced goods, 700 items can be displayed in the store. If it emphasizes designer wear, only 300 designer items can be displayed. These numbers also are the average monthly sales in units.

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Average sale price Average variable expenses Average contribution margin Average fixed expenses (allocated) Average operating income Per Item Moderately Designer Priced S 200 S 84 85 24 115 60 20 10 95 S 50