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Rouse Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line emphasize. Accountants have provided the following data: EEB(Click
Rouse Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line emphasize. Accountants have provided the following data: EEB(Click the jcon 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.) X Product Data Table Designer Moderately Priced Units displayed per square foot Designer Per Item Moderately priced Moderately Contribution margin per unit Priced Designer Contribution margin per square foot of display space Average sale price 195 S 79 Capacity-Square feet of display space 85 28 Average variable costs Average contribution margin 110 51 Total contribution margin at capacity 15 10 Average fixed costs (allacated) Decision: 41 95 Average operating incomo The Rouse Company store d Junction, Colorado, has 8,000 priced goods, it can display 640 iterns in the store. If Rouse Company emphasizes designer wear, it can only display 160 designer items. These numbers are also the average monthly sales in units Print Done
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