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The Blossom Inn is a restaurant that specializes in southwestern style meals in a moderate price range. Jason Allen, the manager of Blossom, has determined

The Blossom Inn is a restaurant that specializes in southwestern style meals in a moderate price range. Jason Allen, the manager of Blossom, has determined that during the past two years the sales mix and contribution margin ratio of its offerings have been as follows: Percent of Total Sales Contribution Margin Ratio Appetizers 10% 60% Main entrees 60% 30% Desserts 10% 50% Beverages 20% 80% Jason is considering a variety of options to try to improve the restaurant's profitability. Her goal is to generate a target operating income of $124,800. The company has fixed costs of $1.232.400 per year. Suppose that Jason drops the selling price on entrees and increases fixed costs by 50%, but customers are not swayed by the marketing efforts and the product mix remains as given in the question statement. Calculate the total restaurant sales and the sales of each product line that would be necessary in order to achieve the desired target operating income. (Round answers to the nearest whole dollar, e.g. 5,275.) Appetizers $ Entrees $ Desserts $ Beverages Total sales $ Your answer is correct. Calculate the total restaurant sales and the sales of each product line that would be necessary in order to achieve the desired target operating income. Appetizers $ 301600 Entrees $ 1809600 Desserts $ 301600 Beverages $ 603200 Total sales $ 3016000 eTextbook and Media Jason believes the restaurant could greatly improve its profitability by reducing the complexity and selling prices of its entrees to increase the number of clients that it serves, and by more heavily marketing its appetizers and beverages. She is proposing to drop the contribution margin ratio on the main entrees to 10% by reducing the average selling price. She envisions an expansion of the restaurant that would increase fixed costs by 50%. At the same time, she is proposing to change the sales mix to the following: Percent of Total Sales Contribution Margin Ratio Appetizers 20% 60% Main entrees 30% 10% Desserts 10% 50% Beverages 40% 80% Calculate the total restaurant sales and the sales of each product line that would be necessary in order to achieve the desired target operating income if Jason's changes are implemented. Appetizers $ 759000 Entrees $ 1138500 Desserts $ 379500 Beverages $ 1518000 Total sales $ 3795000

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