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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
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 by dropping the average selling price. He envisions an expansion of the restaurant that would increase fixed costs by $ At the same time, he is proposing to change the sales mix to the following.
tabletablePercent ofTotal SalestableContributionMargin RatioAppetizers
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