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A restaurant has three main products. Fixed costs are $397,000 and the tax rate is 25%. Other financial information is as follows: Item Average Purchase
A restaurant has three main products. Fixed costs are $397,000 and the tax rate is 25%. Other financial information is as follows:
Item | Average Purchase (in $) | Average Margin | Total Sales Dollars (in %) |
drinks | 10 | 60% | 40 |
meals | 25 | 20% | 50 |
desserts | 10 | 70% | 10 |
What are total sales (in dollars) needed to make a profit of $100,000 if the sales mix remains constant?
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