ng Who is lastike Manifested after narcotango narcoing *As children met Chapter 11 CM Question 3 of 3 .../50 III View Police Current Attempt in Progress The Grand Inn is arestaurant in Flagstaf 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 Percent of Total Sales Contribution Marcin Ratio Appetizers 15 % 70 % Main entrees 50% 25X Desserts 10X 800 Beverages 25 % 80% Paulis 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 foxed costs of $1419. 100 per year Your rower has been saved See score details after the due date Calculate the total restaurant sales and the sales of each product line that would be necessary to achieve the desired tar et net Income. (Round intermediate calculations to 3 decimal placeses. 0251 and final answers to decimal places, ex 2.510) Totalrestaurantes $ -3010000 Question 3 of 3 .../50 HD of $116,000. The company has fixed costs of $1.419,100 per year. (a) Your answer has been saved. Sea score details after the due date 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 places ex. 0.251 and final answers to decimal places. es. 2510) Total restaurant sales $ 3010000 Sales from Each Product Appetizers $ 451500 Main entrees $ 1505000 Desserts $ 301000 Beverages $ 752500 Attempts: 1 of 1 used (b) Paol believes the restaurant could notly improve its probability by reducing the complexity and selling price of its entrees to Question 3 of 3 ... / 50 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 envisions an expansion of the restaurant that would increase fixed costs by $582.900. At the same time, he is proposing to change the sales mix to the following Percent of Total Sales Contribution Margin Ratio Appetizers 25 % 7090 Main entrees 25 % 10 90 Desserts 10 % 80 % Beverages 40 % 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 placeres 10.251 and final answers to decimal places, es 2,510) Total restaurant sales $ Sales from Each Product Appetizers $ Main entre $ Desserts S Beverages 5
