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Could you please help answer to question a, b, c, d, e, The Hillside Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern

Could you please help answer to question a, b, c, d, e,

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The Hillside Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in the moderate price range. Phil Weld, the manager of Hillside, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows: Name Box Current Sales Mix & CM % of Sales CM Ratio Appetizers 15% 50% Main Entrees 50% 25% Desserts 10% 50% Beverages 25% 80% Total 100% Phil is considering a variety of options to try to improve the profitability of the restaurant. His goal is to generate a target net income of $117,000. The company has fixed costs of $1,053,000 per year. Instructions: (a) Calculate the total restaurant sales and the sales of each product line that would be necessary to achieve the desired target NI. (b)Phil 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. He envisions an expanion of the restaurant that would increase fixed costs by $585,000. As the same time, he is proposing to change the sales mix to the following: Proposed Sales Mix & CM % of Sales CM Ratio Appetizers 25% 0% Main Entrees 25% 10% Desserts 10% 50% Beverages 40% 80% Total 100% (b) Compute the total restaurant sales, and the sales of each product line that would be necessary to achieve the desired target net income. Look at the proposed Sales Mix and discuss how the restaurant has changed. How would your marketing change to appeal to this new sales mix? ( c ) Suppose that Phil 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 each product line that would be necessary to achieve the desired target net income. Comment on the main risk and the main benefit of this new strategy.(d What is the Break-Even (BE) for the Restaurant today (Part a} AND the BE under the New Proposal by Phil (Part B ). Show Break-Even in total sales dollars and sales by product mix. (e ) Calculate the M05 in total sales dollarsAND percentage for both scenarios in part D. (1') Should the restaurant allow Phil to make these changes? The %age that I had here was incorrect so I took it out

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