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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
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. Appetizers Main entrees Desserts Percent of Contribution Total Sales Margin Ratio 15 % 70% 50% 25 % 10% 70% 25 % 80% Beverages 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 $117,000. The company has fixed costs of $1,363,000 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 e.g. 0.251 and final answers to O decimal places, e.g. 2,510.) Total restaurant sales $ Sales from Each Product Appetizers $ Main entrees $ Desserts A Beverages tA eTextbook and Media Save for Later Attempts: 0 of 5 used Submit
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