(L.OBJ. 3) Making dropping a product and product-mix decisions [10—15 min] Cole sells b...

(L.OBJ. 3) Making dropping a product and product-mix decisions [10—15 min]

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

The Cole store in Reno, Nevada, has 8,000 square feet of floor space. If Cole emphasizes moderately priced goods, it can display 560 items in the store. If Cole emphasizes designer wear, it can only display 240 designer items. These numbers are also the average monthly sales in units.

Requirement

1. Prepare an analysis to show which product the company should emphasize.