Recipe Cost

Company Averages
Product	Product Mix	Cost of Beverages	Beverage Sales	Beverage Cost %
Beer	30%	$24,336	$121,680
Wine	20%	20,280	81,120
Spirits (nonfrozen specialty drinks)	30%	30,420	121,680
Spirits (frozen specialty drinks)	20%	24,336	81,120
Total
Jana's Beachfront Restaurant
Product	Product Mix	Cost of Beverages	Beverage Sales	Beverage Cost %
Beer	15%	$10,700	$53,500
Wine	5%	6,125	24,500
Spirits (nonfrozen specialty drinks)	25%	30,500	122,000
Spirits (frozen specialty drinks)	55%	75,000	250,000
Total

Look at the sales mix and the beverage cost percentages of both the company and the beachfront restaurant. Explain why Janas total beverage cost percentages are consistently different from the company averages. What would you advise Jana to tell her regional manager?