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The Cullumber Inn is a restaurant in Flagstaff,Arizona, It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager of Cullumber,

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The Cullumber Inn is a restaurant in Flagstaff,Arizona, It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager of Cullumber, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows. Sales mix is determined using total sales dollars. Puul is consideringa vaniety of options to try to improve the profitability of the restaurant. His goal is to generate a target net income of $124,020 The compary has foced costs of $1.116.180 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 eg. 0.251 and final answers to 0 decimol places, eg. 2,510) Total restaurant sales Paul believes the restaurant could greatly improve its profitability by reducing the complexity and selling rice 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 emvisions an expansion of the restaurant that would increase fixed costs by $620,100. At the same time, he is proposing to change the sales max to the following Compote the fotal restatisant sales, and the sales of each product line that woold be necessary to achieve the degiced targer net income $124.020, (Round intermedlate colculutions to 3 decimal places ej 10251 and finat aniwers to 0 decimal places, es. 2.510 . 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 heivily market its appetizers and beverages He is proposing to reduce the contribution margin ratio on the main entrees to 108 by dropping the average selling price. He envisions an expansion of the restaurant that would increase foed costs by $620,100. At the same time, he is proposing to change the sales mix to the following Comipute the total restaurant sales, what the siles of each prochuct line that would be necrssary to achieve the desired target net incpme $124,020, (ikound intermed late colculotions to 3 decimal places es. 10.251 and final anwers to 0 decimal places, 6%2.510 ) Total restiourant sales Compute the total restaurant sales, and the sales of each product line that would be necessary to achieve the desired target net income $124,020. (Round intermediate calculations to 3 decimal places eg. 10.251 and final answers to 0 decimal places, eg. 2,510)

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