(Click the icon to view the data.) repare 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.) 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 ecision: Emphasize designer goods Designer Product Moderately Priced Data table Average sale price Average variable costs Average contribution margin Average fixed costs (allocated) Average operating income $ $ Per Item Designer Moderately Priced 220 S 75 145 20 125 $ 83 24 59 15 44 The Cole Company store in Grand Junction, Colorado, has 7,000 square feet of floor space. If Cole Company emphasizes moderately priced goods, it can display 490 items in the store. If Cole Company emphasizes designer wear, it can only display 210 designer items.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cole 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 per square foot and the contribution margin per square foot to two decimal places.)
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
Decision:
Emphasize designer goods
Emphasize moderately priced goods
Designer
Product
Moderately Priced
Data table
Average sale price
Average variable costs
Average contribution margin
Average fixed costs (allocated)
Average operating income
$
Print
$
Per Item
Moderately
Designer Priced
Done
220 $
75
145
20
125 $
83
24
The Cole Company store in Grand Junction, Colorado, has 7,000
square feet of floor space. If Cole Company emphasizes moderately
priced goods, it can display 490 items in the store. If Cole Company
emphasizes designer wear, it can only display 210 designer items.
These numbers are also the average monthly sales in units.
59
15
44
- Xx
Transcribed Image Text:Cole 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 per square foot and the contribution margin per square foot to two decimal places.) 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 Decision: Emphasize designer goods Emphasize moderately priced goods Designer Product Moderately Priced Data table Average sale price Average variable costs Average contribution margin Average fixed costs (allocated) Average operating income $ Print $ Per Item Moderately Designer Priced Done 220 $ 75 145 20 125 $ 83 24 The Cole Company store in Grand Junction, Colorado, has 7,000 square feet of floor space. If Cole Company emphasizes moderately priced goods, it can display 490 items in the store. If Cole Company emphasizes designer wear, it can only display 210 designer items. These numbers are also the average monthly sales in units. 59 15 44 - Xx
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