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 $584,600. At the same time, he is proposing to change the sales mix to the following Percent of Total Sales Contribution Margin Ratio Appetizers 25 % 70 % Main entrees 25 % 10 % Desserts 10 % 60 % 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 places eg. 10.251 and final answers to O decimal places, e.g. 2,510) Total restaurant sales $ Appetizers $ Sales from Each Product 381293 Main entrees $ 381293 Desserts $ 152517 Beverages $ 610069 1072660 Current Attempt in Progress 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. Percent of Total Sales Contribution Margin Ratio. Appetizers 15 % 70 % Main entrees 50 % 25 % Desserts 10 % 60 % Beverages 25% 80 % 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 $119,000. The company has fixed costs of $1,390,200 per year. (a) Your answer is correct. 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 eg. 0.251 and final answers to O decimal places, es 2.510) Total restaurant sales 3000000 (a) Your answer is correct. 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 eg. 0.251 and final answers to O decimal places, eg. 2.510) Total restaurant sales Appetizers Main entrees Desserts Sales from Each Product 462000 1540000 308000 Beverages 770000 3080000 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 $584,600. At the same time, he is proposing to change the sales mix to the following. Total Sales Percent of Contribution Margin Ratio Appetizers 25 % 70 % Main entrees 25 % 10 % Desserts 10 % 60 % 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 places eg. 10.251 and final answers to 0 decimal places, eg. 2.510) Total restaurant sales Sales from Each Product Appetizers $ 381293 Main entrees $ 381293 Desserts $ 152517 Beverages $ 610069 1072660