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need homework help for part B Paul believes the restaurant could creatly improve its profitability by reducing the camplexity and selling price of its entrees
need homework help for part B
The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager of Grand, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows. Paul 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 $116,000. The company has fixed costs of $1,213,600 per year. (a) Calculate 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 ploces es. 0.251 and find answers to 0 decimal ploces es. 2.510.) Total restaurant sales $. Calculate the total restaurant sales and the sales of each product line that would be necessary to achieve the desired target net Total restaurant sales Attempts: 1 of 3 used Paul believes the restauramt coudd creatly inerove its profitababty by reducine the complexity ard selline price of its entrces to increase the number of clients that it seives. It would then more heavily maket its appetizers and beverser. He is procosine to of the restarant that would increate fined conts by 5585.600. At the same time, he is proposine to thante the sates mix to the fellowing Paul believes the restaurant could creatly improve its profitability by reducing the camplexity 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 envisione an expansion of the restaurant that would increase fixed costs by $585,600. At the same time, he is proposing to change the sales mix to the
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