QUESTION 3

A restaurant has three main products. Fixed costs are $397,000 and the tax rate is 35%. Other financial information is as follows:

Item	Average Selling price per item (in $)	Average Contribution Margin per item	Total Sales Dollars (in % of total sales)
drinks	10	60%	40 %
meals	25	20%	50 %
desserts	10	50%	10 %

What are total sales (in dollars) needed to make an after tax profit of $200,000, assuming that the sales mix remains constant?

How many drinks would they need to serve per week to make an after-tax profit of $200,000? (assume 52 weeks in a year)