Question
The Green Valley Restaurant has three operating departments: Caf, Bar, and Catering. The new General Manager Henderson wants to know what the level of
The Green Valley Restaurant has three operating departments: Caf, Bar, and Catering. The new General Manager Henderson wants to know what the level of sales is needed to achieve a 30% Return on Investment of $8,000,000. The information of Operating of 2020 is as follows: Total Revenue Caf Bar Catering Fixed cost $2,500,000 60% of Total Revenue; a CMR of 0.67 16% of Total Revenue; a CMR of 0.80 Catering generates the remaining revenue; CMR of 0.72 $1,000,000 Tax Rate 30% 1. What is the Average Weighted Contribution Margin Ratio (CMRw) 2. What is the Required Revenue for the Green Valley Restaurant?
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