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

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Per Item
	Designer	Moderately Priced
Average sale price	$215	$80
Average variable costs	75	26
Average contribution margin	140	54
Average fixed costs (allocated)	15	10
Average operating income	$125	$44

The

Stenback Company

store in Grand Junction, Colorado, has

14,000

square feet of floor space. If

Stenback Company

emphasizes moderately priced goods, it can display

980

items in the store. If

Stenback Company

emphasizes designer wear, it can only display

420

designer items. These numbers are also the average monthly sales in units.

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.)

		Product
		Designer		Moderately Priced
	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