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.

Percent of Contribution Margin Ratio Total Sales Appetizers 15 % 70 % 25 % Main entrees 50 % Desserts 10 % 80 % Beverages 80 % 25 % 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 $115,000. The company has fixed costs of $1,142,000 per year 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 e.g. 0.251 and final answers to 0 decimal places, e.g. 2,510.) Total restaurant sales 2,464,706 Sales from Each Product Appetizers 369,706 Main entrees 1,232,353 246,471 Desserts Beverages 616,176 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 $585,000 At the same time, he is proposing to change the sales mix to the following. Percent of Contribution Total Sales Margin Ratio 25 % Appetizers 70 % Main entrees 25 % 10 % Desserts 10 % 80 % 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 e.g. 10.251 and final answers to 0 decimal places, e.g. 2,510.) Total restaurant sales Sales from Each Product Appetizers Main entrees Desserts Beverages tA SA 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 e.g. 10.251 and final answers to O decimal places, e.g. 2,510.) Total restaurant sales Sales from Each Product Appetizers Main entrees $ Desserts Beverages