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E25-16 (similar to) Root Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided
E25-16 (similar to) Root Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: Click the icon to view the data.) Prepare an analysis to show which product the company should emphasize. (Enter the units displayed per square foot and the contribution margin per square foot to two decimal places.) Product Moderately Priced Designer Units displayed per square foot: Designer Moderately priced Contribution margin per unit Contribution margin per square foot of display space Capacity-Square feet of display space Total contribution margin at capacity Enter any number in the edit fields and then click Check Answer. 0 Data Table Per Item Moderately Designer Priced 195 $ 100 Average sale price Average variable costs Average contribution margin Average fixed costs (allocated) 70 $ 50 Average operating income The Rouse Company store in Grand Junction, Colorado, has 11,000 square feet of floor space. If Rouse Company emphasizes moderately priced goods, it can display 660 items in the store. If Rouse Company emphasizes designer wear, it can only display 440 designer items These numbers are also the average monthly sales in units. Print Done
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