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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.

image text in transcribed
Suppose that Paul reduces the selling price on entrees and increases xed costs as proposed in part (b), but customers are not swayed by the marketing efforts and the sales mix remains what it was in part (a). 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 e.g. 10.251 and nal answers to 0 decimal places, e.g. 2,510.) Total restaurant sales $ Sales from Each Product Appetizers $ Main entrees $ Desserts $ $ S Beverages

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