Question

Data Table any sells both designer and to emphasiz ta: on to view the data.) lysis to show which product Per Item bution marg Moderately Designer Priced 175 $ 85 per square foot Average sale price Average variable costs Average contribution margin Average fixed costs (allocated) Average operating income 27 priced argin per unit argin per square foot of disp are feet of display space ion margin at capacity 20 70 $ 52 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 840 items in the store. If er in the edit fields and th Print Done

Answer 1

NOTE:IN THE PICTURE YOU'VE PROVIDED, NO. OF DESIGNER PRODUCTS DISPLAYED IS NOT INCLUDED .YOU MAY COMMENT THAT FIGURE VALUE, SO THAT I CAN SOLVE IT FOR YOU.

		Designer		Moderately Priced
Units displayed per square foot:
Designer		​​​​​​???
Moderately Priced				0.07
Contribution margin per unit	×	$90	×	$57
Contribution margin per square foot of display space		$???		$3.99
Capacity-square foot of display space	×	12,000	×	12,000
Total Contribution margin at capacity		$​​​​​​???		$47,880

Units displayed per square foot = Units displayed ÷ Capacity square foot of display space

Units displayed per square foot of Designer = ??? ÷12,000 =​​​​​​???

Units displayed per square foot of Moderately Priced = 840÷12000 = 0.07 units

From the above analysis, the company should emphasis on Designer Product. Because, it has the higher Contribution margin than Moderately Priced Product.

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