Stenback Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: 1(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.) 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 Decision: (1) 1: Data Table Per Item Designer Moderately Priced Average sale price $220 $88 Average variable costs 100 20 Average contribution margin 120 68 Average fixed costs (allocated) 20 15 Average operating income $100 $53 The Stenback Company store in Grand Junction, Colorado, has 7,000 square feet of floor space. If Stenback Company emphasizes moderately priced goods, it can display 490 items in the store. If Stenback Company emphasizes designer wear, it can only display 210 designer items. These numbers are also the average monthly sales in units. (1) Emphasize moderately priced goods Emphasize designer goods

Stenback Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: 1(Click the...

Stenback Company

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

1(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.)

	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

Decision:

(1)

1: Data Table

	Per Item
	Designer	Moderately Priced
Average sale price	$220	$88
Average variable costs	100	20
Average contribution margin	120	68
Average fixed costs (allocated)	20	15
Average operating income	$100	$53

The

Stenback Company

store in Grand Junction, Colorado, has

7,000

square feet of floor space. If

Stenback Company

emphasizes moderately priced goods, it can display

490

items in the store. If

Stenback Company

emphasizes designer wear, it can only display

210

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

(1)

Emphasize moderately priced goods

Emphasize designer goods

Jun 10, 2022

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Stenback Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: 1(Click the...

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Stenback Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following​ data: 1​(Click the...

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Stenback Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: 1(Click the...