The Carla Vista Inn is a restaurant that specializes in southwestern style meals in a moderate price range. Joseph Moore, the manager of Carla Vista, has determined that during the past two years the sales mix and contribution margin ratio of its offerings have been as follows:

Joseph is considering a variety of options to try to improve the restaurants profitability. Her goal is to generate a target operating income of $166,400. The company has fixed costs of $1,144,000 per year.

a. 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 Main entrees Desserts Beverages Percent of Total Sales 10% 60% 10% Contribution Margin Ratio 60% 30% 50% 80% 20% Appetizers $ Entrees $ Desserts Beverages $ $ $ Total sales $