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) Company x is a restaurant in Salihli, Manisa. It specializes in southwestern style meals in moderate price range. Ziya Ta kent , the manager
Company is a restaurant in Salihli, Manisa. It specializes in southwestern style meals in moderate price range. Ziya
Takent the manager of Company X has determined that during the last years the sales mix and contribution margin
ratio of its offerings are as follows:
Ziya Bey's goal is to generate a target net income of TL The company has fixed costs of TL per annum.
Q Calculate the sales of Beverages in TL that would be necessary to achieve the desired target net income.
Q Ziya Bey 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 by dropping its
average selling price. He envisions an expansion of the restaurant that would increase fixed costs by an additional
TL At the same time, he is proposing to change sales mix as follows:
Calculate the sales of Beverages in TL that would be necessary to achieve the desired target net income.
Q Suppose that Ziya Bey reduces the selling price on entrees and increases the fixed costs as proposed in Question
but customers are not swayed by the marketing efforts and the sales mix remains what it was in Question
Calculate the sales of Beverages in TL that would be necessary to achieve the desired target net income.
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