Can you please help me with problem number P6-5B, thank you!

2 6 Cost-Volume-Profit Analysis: AdditionalIssues Michael is considering a variety of options to try to improve the profitability of the restau- ant. His goal is to generate a target net income of $176,000. The company has fixed costs of $352,000 per year Instructions (a) Total sales, $1,320,000 (a) Calculate the total restaurant sales and the sales of each product line that would be necessary to achieve the desired target net income. Total sales, $1,600,000 (b) Michael believes the restaurant could greatly improve its profitability by reducing the complexity and selling price of its entrees to increase the number of clients that it serves. It would then more heavily market its appetizers and beverages. He is proposing to reduce the contribution margin ratio on the main entrees to 10% by dropping the average selling price and increasing the contribution margin ratio on desserts to 50% by reducing costs. He envisions an expansion of the restaurant that would increase fixed costs by 50% At the same time, he is proposing to change the sales mix to the following. Contribution Percent of Total Sales 25% 40% 60% Main entrees Desserts 50% 80% 25% Compute the total restaurant sales, and the sales of each product line that would be necessary to achieve the desired target net income (c) Total sales, $2,200,000 (c) Suppose that Michacl reduces the selling price on entrees and increases fixed costs as proposed in part (b), but customers are not swayed by the marketing efforts and the sales mix remains what it was in part (a). Compute the total restaurant sales and the sales of cach product line that would be necessary to achieve the desired target net income. Comment on the potential risks and benefits of this strategy Deternine sales mix with limited resources P6-4B Keppel Corporation manufactures and sells three different models of exterior doors. Although the doors vary in terms of quality and features, all are good sellers, Keppel is currently operating at full capacity with limited machine time LO 3), AN Sales and production information relevant to each model is shown below Product Economy Standard Deluse Selling price Variable costs and expenses Machine hours required $270 $450 $650 $430 Instructions (a) Ignoring the machine time constraint, which single product should Keppel produce? (b) What is the contribution margin per unit of limited resource for each product? (c) If additional machine time could be obtained, how should the additional time be b) Economy 5210 used? of operating P6-5B The following variable costing income statements are available for Lyte Company and Darke Company leverage and evaluate impac of operating leverage on financial results (LO 4), AN Darke Company Lyte Company $1,000,000 $1,000,000 Sales Variable costs 200,000 800,000 600,000 s 200,000 600,000 Contribution margin Fixed costs Net income $ 200,000 Instructions (a) Compute the break-even point in dollars and the margin of safety ratio for each company, (b) Compute the degree of operating leverage for each company and interpret your results. (c) Assuming that sales revenue increases by 30%, prepare a variable costing income (a) BE Lyte $500,000 BE Darke $750,000 b) DOL, Lyte 2.0 DOL, Darke 4.0 statement for each company