Titanium clothing sells uniforms for superheroes. Titanium's strategy is to offer a wide selection of clothing options, excellent customer service, and a premium price. Titanium presents the following data for 2015 and 2016. For simplicity, assume that each customer (superhero) purchases one piece of clothing. Pieces of clothing purchased and sold Average selling price Average cost per piece of clothing.

 

2015 2016 Pieces of clothing purchased and sold Average selling price Average cost per piece of clothing Selling and customer-service capacity 40,000 $60 $40 51,000 40,000 $59 $41 43,000 customers customers Selling and customer-service costs Selling and customer-service capacity cost per customer (line 5/ line 4) Purchase and administrative capacity Purchase and administrative costs $357,000 $7 $296,700 $6.90 980 designs $245,000 $250 per design 850 designs $204,000 $240 per design Purchasing and administrative capacity cost per distinct design (line 8/ line 7)