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follow up on question C. Your answer is correct Paul believes the restaurant could greatly improve its profitability by reducing the complexity and selling price
follow up on question C.
Your answer is correct Paul 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 erwisiores an expansion of the restaurant that would increase fixed costs by $585,250. At the same time, he is proposing to change the sales mixto the following Percent of Total Sales Contribution Margin Ratio Appetizers 25 % 80 % Main entrees 25 % 10 X Desserts 10 % 80 % Beverages 4094 80 % Compute the total restaurant sales, and the sales of each product line that would be necessary to achieve the desired target net Income. (Round intermediate calculations to 3 decimal places. 10.251 and final answers to decimal places, s 2,510) 26600000 on 5 of 7 Compute the total restaurant sales, and the sales of each product line that would be necessary to achieve the desired are Income. (Round intermediate calculations to 3 decimal places 10.251 and finalnswers to decimal places, es 2510) 5.13/11 Total restaurant sales $ 2.360.000.0 Sales from Each Product Appetizers $ 715,000 Main entrees $ 715,000 Desserts $ 286,000 Beverages 1,144,000 e Textbook and Media Assistance Used NIE (c) Suppose that Paul reduces the selling price on entrees and increases foed costs as proposed in part but customers are not swayed by the marketing efforts and the sales mix remains what it was in part al Compute the total restaurant sales and the sales of each product line that would be necessary to achieve the desired target net income (Round intermediate collations to deal places es 10.251 and final answers to decimal places, es 2,510) Total restaurant sales $ Sales from Each Product Appetizers $ Main entrees $ Desserts Beverages Your answer is correct Paul 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 erwisiores an expansion of the restaurant that would increase fixed costs by $585,250. At the same time, he is proposing to change the sales mixto the following Percent of Total Sales Contribution Margin Ratio Appetizers 25 % 80 % Main entrees 25 % 10 X Desserts 10 % 80 % Beverages 4094 80 % Compute the total restaurant sales, and the sales of each product line that would be necessary to achieve the desired target net Income. (Round intermediate calculations to 3 decimal places. 10.251 and final answers to decimal places, s 2,510) 26600000 on 5 of 7 Compute the total restaurant sales, and the sales of each product line that would be necessary to achieve the desired are Income. (Round intermediate calculations to 3 decimal places 10.251 and finalnswers to decimal places, es 2510) 5.13/11 Total restaurant sales $ 2.360.000.0 Sales from Each Product Appetizers $ 715,000 Main entrees $ 715,000 Desserts $ 286,000 Beverages 1,144,000 e Textbook and Media Assistance Used NIE (c) Suppose that Paul reduces the selling price on entrees and increases foed costs as proposed in part but customers are not swayed by the marketing efforts and the sales mix remains what it was in part al Compute the total restaurant sales and the sales of each product line that would be necessary to achieve the desired target net income (Round intermediate collations to deal places es 10.251 and final answers to decimal places, es 2,510) Total restaurant sales $ Sales from Each Product Appetizers $ Main entrees $ Desserts Beverages Step by Step Solution
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