D 3) Sales Mix Analysis Delving further into the operations, another branch which is in the restaurant business is brought into focus. Management desires a net income of $ 135,000 from this division which has fixed costs of $ 300,000 per year. The following information about the operations of the division for the past two years has been supplied.

Sales Mix Percentage Contribution Margin

Ratio Appetizers 30% 60%

Main Entrees 50% 25%

Desserts 10% 50%

Beverages 10% 80%

You are required to prepare a report to show:

a) The total sales required to achieve the desired net income 6 Marks

b) The total sales of each product required to meet the objective. 4 Marks