Piper Purse sells designer and everyday priced handbags. Top management is deciding which product line to emphasize. Company accountants have provided the following data:

$\backslash$table$[[,,\backslash$table$[[$igner Per Ev$],[$Item$]],\backslash$table$[[$veryday Per$],[$Item$]]],[$Average Sales Price,$$,258$$$,107],[$Average Variable Costs,,$93.,29],[$Average Contribution Margin,,$165,78],[$Average Fixed Costs $($allocated$),,28,7],[$Average Operating Income,$$,137$$$,71]]$

The store has $4,700$ square feet of floor space. If the company emphasizes everyday handbags, it can display $1,833$ items in the store. If the store emphasizes designer handbags, it can display only $517$ items. These numbers are also the average monthly sales in units. Prepare an analysis to show which product the company should emphasize. Explain your answer. $($Do not round items per square foot and round the total contribution margin to the nearest cent.$)$

Start by calculating the contribution margin per square foot for the Designer handbags.

Designer

Amount

Contribution margin per item

Items per square foot of display space

Total contribution margin per square foot of display

space

Calculate the contribution margin per square foot for the Everyday handbags.

Everyday

Amount

Contribution margin per item

Items per square foot of display space

Total contribution margin per square foot of display

space

Based on the analysis, which handbag should Piper emphasize?