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1. What is the level of sales required to achieve a 15% ROI on an investment of $10,000,000 for the following two departments (food and
1. What is the level of sales required to achieve a 15% ROI on an investment of $10,000,000 for the following two departments (food and beverage) restaurant while covering all costs?
Consider the following:
1. Food generates 90% of sales with a contribution margin ratio of 0.70
2. Beverages generate the remainder of sales with a CMR of 0.50
3. The restaurant's tax rate is 30%
4. Annual fixed costs amount to $1,000,000
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