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please help with part C The Sandhill Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range.
please help with part C
The Sandhill Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager of Sandhill, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows. Sales mix is determined using total sales dollars. 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 $140,400. The company has fuxed costs of $1,263,600 per year. Calculate the total restaurant sales and the sales of each product line that would be necessary to achieve the desired target net income, (Round intermedlate calculations to 3 decimal ploces eg. 0.251 and final answers to 0 decimal ploces, eg. 2.510.) Total restaurant sales 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 foxed costs by $702,000. At the same time, he is proposing to change the sales mix to the following. Compute the total restaurant sales, and the sales of each product line that would be necessary to achieve the desired target net income \$140,400. (Round intermedlate coiculations to 3 decimal ploces es. 10.251 and final answers to 0 decimal ploces, eg. 2,510) Total restaurant sales $ Compute the total restaurant sales, and the sales of each product line that would be necessary to achieve the desired target net income $140,400. (Round intermedlate calculations to 3 decimal ploces eg. 10.251 and final answers to 0 decimal ploces, eg. 2.510.) Total restaurant sales Suppose that Paul reduces the selling price on entrees and increases fored costs as proposed in part (b), but custorners 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 intermedlate calculations to 3 decimol places eg. 10.251 and final answers to 0 declmal places, eg. 2,510.) Total restaurant sales \$ Step by Step Solution
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