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Company Averages Cost of Beverage Beverage Product Product Mix Beverages Sales Cost % Beer 30% $24,336 $121,680 Wine 20% 20,280 81,120 Spirits (nonfrozen specialty drinks)

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Company Averages Cost of Beverage Beverage Product Product Mix Beverages Sales Cost % Beer 30% $24,336 $121,680 Wine 20% 20,280 81,120 Spirits (nonfrozen specialty drinks) 30% 30,420 121,680 Spirits (frozen specialty drinks) 20% 24,336 81,120 Total Jana's Beachfront Restaurant Cost of Beverage Beverage Product Product Mix Beverages Sales Cost % Beer 15% $ 14,700 $ 73,500 Wine 5% 6,125 24,500 Spirits (nonfrozen specialty drinks) 15% 18,375 73,500 Spirits (frozen specialty drinks) 65% 95,550 318,500 Total Look at the sales mix and the beverage cost percentages of both the company and the beachfront restaurant. Explain why Jana's total beverage cost percentages are consistently higher than the company averages. What would you advise Jana to tell her Regional Manager?

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