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A retail store in a fast-growing city faces strong demand for most of its products. Adequate supply of all products is available from wholesalers, and
A retail store in a fast-growing city faces strong demand for most of its products. Adequate supply of all products is available from wholesalers, and sufficient sales staff are available. However, it is not possible to stock all products demanded, nor is it feasible to expand the store. In deciding which products to stock, the store manager should choose a product mix that maximizes: Total revenue.
Contribution margin per unit sold.
Contribution margin per square foot of floor space.
Contribution margin per sales staff hour.
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