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The Ivanhoe Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager
The Ivanhoe Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager of Ivanhoe, 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. Percent of Total Sales Contribution Margin Ratio Appetizers 15 % 50 % Main entrees 50 % 25 % Desserts 10 % 50 % 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 $126,360. The company has fixed costs of $1,137,240 per year. Your answer is incorrect. 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 Appetizers Sales from Each Product 403277 Main entrees $ 1344256 Desserts Beverages 268851 672128 2688511
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