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What is the level of sales needed to achieve a 10% return on an investment of $10,000,000 for a restaurant (the restaurant has main
What is the level of sales needed to achieve a 10% return on an investment of $10,000,000 for a restaurant (the restaurant has main products it sells: food, beverage and gift shop items) and cover all costs? Note the following information: Food generates 70% of sales and the food cost percent is 30. Beverages generate 25% of sales with a CMR of .82. Gift store items account for the rest of the sales with a CMR of .8. The fixed costs are $1,500,000 annually. What is the level of sales needed?
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