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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.
Percent of Total Sales | Contribution Margin Ratio | |||||
Appetizers | 15 | % | 80 | % | ||
Main entrees | 50 | % | 25 | % | ||
Desserts | 10 | % | 60 | % | ||
Beverages | 25 | % | 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 $ 117,000 . The company has fixed costs of $ 1,185,000 per year.
(a) Your answer is correct. 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 saless 2578218 Sales from Each Product 386732.7 1289109 257821.8 644554.5 Appetizers Main erees Desserts BeveragesStep by Step Solution
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