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The Bricktown Pub is a restaurant that specializes in classic east coast fare in a moderate price range. Debbie MacNeil, the manage of Bricktown, has
The Bricktown Pub is a restaurant that specializes in classic east coast fare in a moderate price range. Debbie MacNeil, the manage of Bricktown, has determined that during the last two years the sales mix and contribution margin of its offerings are as follows: Percent of Total Sales Contribution Margin Ratio 10% Appetizers 50% Main entrees 55% 30% 10% Desserts 60% Beverages 25% 75% Debbie is considering a variety of options to try to improve the restaurant's profitability. Her goal is to generate a target operating income of $155000. The company has fixed costs of $400000 per year. Complete the following table to calculate the weighted average contribution margin ratio. Use 4 decimal places (e.g., 0.1234). Percent of Total Sales Contribution Margin Ratio Weighted Average Appetizers 10% 50% 55% 30% Main entrees 10% 60% Desserts 25% 75% Beverages Total Weighted Average CMR
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