Per Item
			Moderately
		Designer	Priced
	Average sale price . . . . . . . . . . . . . . . . . .	$190	$83
	Average variable expenses . . . . . . . . . . .	75	27
	Average fixed expenses (allocated) . . . . .	15	5
	Average operating income . . . . . . . . . . . .	$100	$51

Victory sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data:

The Victory store in Calgary, has 1,000 m squared m2 of floor space. If Victory emphasizes moderately priced goods, it can display 700 items in the store. If Victory emphasizes designer wear, it can display only 300 designer items to create more of a boutique-like atmosphere. These numbers are also the average monthly sales in units. Prepare an analysis to show which product to emphasize

Prepare an analysis to show which product to emphasize. (Round all interim calculations to three decimal places. Round your final answer to the nearest whole dollar.)

Victory
Product Mix Analysis
		Product
		Designer		Moderately Priced
		x		x
		x		x

Decision:.....? (Emphasize moderately priced clothing or Emphasize designer clothing?)

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