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help pleasa help please Paul belleves the restaurant could greatly improve its protitability by reducing the complexity and selling price of its sntrces to increase
help pleasa
help please
Paul belleves the restaurant could greatly improve its protitability by reducing the complexity and selling price of its sntrces 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 envislons an evpantion of the restaurant that would increase fixed costs by 5582,900 . At the same time. he is proposing to change the sales mix to the following- Compute the total restaurant sales, and the sales of each product line that would be necescary to achieve the desired target net income. (Round intermediote colculations to 3 decimal ploces eg. 10.251 and final answers to 0 decimal places es 2510 ) The Grand Inn is a restaurant in Flagitaft, Arizona. It specializes in southwestern style mecals in a moderate peice rante. Paul Weld ife manager of Grandi has deterinined that during the last 2 years the sales mix and contritution margia ratio of iti offerinet are as follows. Calculate the total restaurant sales and the sales ofeach product line that would be necessary to achieve the delired tantet net Paul believes the restaurant could greatly improvelts profitability by reducing the compiexity and selling prict of at entreti to: increase the number of clients that it serves. It would then more heivily murket its appetizers and beverages to is proposine to reduce the contribution murgin ratio on the malin entrees to 10O by dropping the average seiling price. He eivt lons an erfaviunt of the festaurant that would increase fixed costs by $592,900. At the same tinte, he is proposing to change the dales min to the fallewine. Compute the total restaurant sales, and the sales of each product line that would be necessary to achieve the desired target net Step by Step Solution
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