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A co-worker incorrectly suggests that the profit will be maximised if the maximum shelf space is devoted to those perfumes with the highest selling price

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A co-worker incorrectly suggests that the profit will be maximised if the maximum shelf space is devoted to those perfumes with the highest selling price per unit. Using your knowledge of marginal costing, explain precisely how the maximum shelf space available should be used to maximise profitability. (4 marks)

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