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Problem 19-3A (25 POINTS) The Grand Canyon Villa Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern meals in a moderate price range.
Problem 19-3A (25 POINTS) The Grand Canyon Villa Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern meals in a moderate price range. Cesar Chavez, 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. Contribution Margin Ratio 60% 25% 609% 80% Percent of Sales 15% 50% 10% 25% Main entrees Desserts 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 $112.000. The company has fixed costs of $1,430,000 per year A Calculate total restaurant sales the company must achieve to break even. B. Calculate the total restaurant sales of each product line that would be necessary to break even. C. Calculate the total restaurant sales that would be necessary to achieve the desired $112,000 target net income
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