QUESTION 2

A restaurant has three main products: drinks, meals and desserts. Fixed costs are $397,000. Other financial information is as follows:

Item	Average Purchase (in $)	Average Margin	Total Sales Dollars (in %)
drinks	10	60%	40
meals	25	20%	50
desserts	10	70%	10

What are total sales (in dollars) needed to make a profit of $200,000 if the sales mix remains constant?