Question
Please answer the question on the screenshot below. The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a
Please answer the question on the screenshot below.
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% 60%
Main entrees 50 %25%
Desserts 10% 50%
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 $114,000. The company has fixed costs of $1,076,400per year.
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