Question 2 of 3 Compute the total restaurant sales, and the sales of each product line that would be ne income. (Round intermediate calculations to 3 dec places eg. 10.251 and final answerst Total restaurant sales $ Sales from Each Product Appetizers $ Main entrees $ $ Desserts $ Beverages $ e Textbook and Media Quection 2 of 3 1.33/4 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 fixed costs by $583,150. At the same time, he is proposing to change the sales mix to the following. Percent of Total Sales Contribution Margin Ratio Appetizers 25 % 60 % Main entrees 25 % 10 % Desserts 10 % 60 % Beverages 40 % 80 % 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 eg. 10.251 and final answers to O decimal places, eg. 2,510.) Totalrestaurant sales $ Sales from Each Product 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 96 60% Main entrees 50 96 25 % Desserts 10 % 60 % Beverages 25 %6 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 $110,000. The company has fixed costs of $1.210,500 per year. Your answer is correct. Calculate 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 eg. 0.251 and final answers to decimal places, eg. 2,510) Total restaurant sales $ 2780000 Sales from Each Product Appetizers $ 417000 Main entrees 1390000 Desserts $ 278000 Beverages $ 695000 * Your answer is incorrect Paul believes the restaurant could greatly improve its profitability by reducing the complety and selling price of its entresto increase the number of dients 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 10x by dropping the werage selling price Henan pansion of the restaurant that would increase fixed costs by $583.150. At the same time, he is proposing to change the sales to the following Percent of Total Sales Contribution Margin Ratio Appetizer 25 N 80 Mais entrees 25 10 Desserts 10 N 80 X Beverages 40 BOX Compute the total restaurant sales and the sales of each product line that would try to achieve the desired target.net Income (Round intermediate actions to decimal places 10251 and final answers to decimale 82.510) Total restaurantes $ 1050720.720 Sales from Each Product Appetite $ 262500160 Main entrees S 2680100 Det S Dvoraces Suppose that Paul reduces the selling price on entrees and increases fixed 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 eg. 10.251 and final answers to decimal places, eg. 2,510.) Total restaurant sales $ 1050720.720 Sales from Each Product Appetizers 262680.180 Main entrees 262680.180 Desserts 105072.072 Beverages $ 420280.288
