The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager of Grand, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows.

Percent of

Total Sales

Contribution

Margin Ratio

Appetizers15%60%Main entrees50%25%Desserts10%50%Beverages25%80%

Paul is considering a variety of options to try to improve the profitability of the restaurant. His goal is to generate a target net income of $111,000. The company has fixed costs of $1,078,000per year.

(a)

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 e.g. 0.251 and final answers to 0 decimal places, e.g. 2,510.)

Total restaurant sales$

Sales from Each Product

Appetizers$

Main entrees$

Desserts$

Beverages$