Can someone please help me solve this! Do Homework - Darren Ho Secure https://ww
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Can someone please help me solve this!
Do Homework - Darren Ho Secure https://www.mathxl.com/Student/PlayerHomework.aspx?homeworkId-451 186809&questionId;=5&flushed-true;&cld-4726945;¢erwin-yes; Secure. View site information ACTG 001C Managerial Accounting (1) Darren Ho 11/29/17 6:26 PM Homework: Chapter 25 Homework Score: 0 of 2 pts E25-16 (similar to) Save 8 of 9 (7 complete) HW Score: 71.22%, 10.68 of 15 pts Question Help White 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.) The White store in Grand Junction, Colorado, has 11,000 square feet of floor space. If White emphasizes moderately priced goods, it can display 770 items in the store. If White emphasizes designer wear, it can only display 330 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.) Data Table Product Designer Moderately Priced Units displayed per square foot: Per Item Designer Moderately 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 Priced Average Sale Price Average Variable Costs Average Contribution Margin Average Fixed Costs (allocated) Average Operating Income 200 $ 85 115 15 100 $ 84 20 64 59 Print Done Enter any number in the edit fields and then click Check Answer Clear All Check AnswerExplanation / Answer
Step 1 : Statement showing which product the company should emphasize
$49,280
Step 2 : Conclusion
The company should emphasize the moderately priced product because the total contribution margin is higher in case of moderately price products.
Particulars Designer Product Moderately Priced Product 1) No. of display items 330 770 2) Capacity- Square feet of display space 11,000 11,000 3) Units displayed per square foot (1/2) 0.03 0.07 4) Contribution margin per unit $115 $64 5) Contribution margin per square foot of display space (3*4) $3.45 $4.48 6) Total contribution margin at capacity (2*5) $37,950$49,280