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Rouse Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data
Rouse 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 p 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 Designer Product Moderately Priced Data table Average sale price Average variable costs Average contribution margin Average fixed costs (allocated) Average operating income $ S Per Item Designer 200 $ 105 95 20 Moderately Priced 75 S 80 23 57 5 52 The Rouse Company store in Grand Junction, Colorado, has 12,000 square feet of floor space. If Rouse Company emphasizes moderately priced goods, it can display 960 items in the store. If Rouse Company emphasizes designer wear, it can only display 240 designer items. These numbers are also the average monthly sales in units.
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