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Klintan Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data:
Klintan 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 MIDI MOT X Data table Per Item Moderately Designer Priced $ 175 $ 87 90 21 Average sale price Average variable costs Average contribution margin Average fixed costs (allocated) Average operating income 85 25 66 15 $ 60 S 51 The Klintan Company store in Grand Junction, Colorado, has 8,000 square feet of floor space. If Klintan Company emphasizes moderately priced goods, it can display 640 items in the store. If Klintan Company emphasizes designer wear, it can only display 160 designer items. These numbers are also the average monthly sales in units
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