Question: please help Cole Compony sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize Accountants have provided the

Cole Compony 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 per square foot and the contribution margin per square foot to two decimal places.) GE Product Designer Moderately Priced Units displayed per square foot: Designer Moderately priced Contribution margin por unit Contribution margin per square foot of display space Capacity-Square feet of display space Total contribution margin at capacity Decision Data table - X mphasize. Accountants have ble Company sells both designer a ovided the following data: Click the icon to view the data repare an analysis to show which o decimal places.) bution margin per square foot to $ Per Item Moderately Designer Priced Average sale price 220 $ 88 Average variable costs BO 25 Average contribution margin 140 63 Average fixed costs (allocated) 25 115 $ Average operating income 48 The Cole Company store in Grand Junction, Colorado, has 13,000 square feet of floor space. If Cole Company emphasizes moderately priced goods, it can display 1,040 items in the store. If Cole Company emphasizes designer wear, it can only display 260 designer items These numbers are also the average monthly sales in units. Ilala Units displayed per square foot: Designer Moderately priced Contribution margin per unit Contribution margin per square foo Capacity-Square feet of display spa Total contribution margin al capacit Decision: Print Done
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
