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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
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.
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