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Question Help McKnight Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the
Question Help McKnight 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.) Data Table X Prepare an analysis to show which product the company should emphasize. (Enter the units display places.) Product Designer Moderately Priced Per Item Moderately Designer Priced $ 185 $ 79 100 27 Units displayed per square foot: Designer Moderately priced Average sale price Average variable costs Average contribution margin Average fixed costs (allocated) 85 52 15 10 Contribution margin per unit $ 42 Contribution margin per square foot of display space 70 $ Average operating income Capacity-Square feet of display space Total contribution margin at capacity The Mcknight Company store in Grand Junction, Colorado, has 12,000 square feet of floor space. If McKnight Company emphasizes moderately priced goods, it can display 960 items in the store. If McKnight Company emphasizes designer wear, it can only display 240 designer items. These numbers are also the average monthly sales in units. Decision: Enter any number in the edit fields and then continue to the next question. Print Done
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