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Problem 19-3A (Part Level Submission) The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range.
Problem 19-3A (Part Level Submission) 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. Appetizers Main entrees Desserts Beverages Percent of Total Sales 1596 50 % 10% 25 % Contribution Margin Ratio 70% 25 % 70% 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 $117,000. The company has fixed costs of $1,343,000 per year
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