The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals...
90.2K
Verified Solution
Link Copied!
Question
Accounting
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 Beverages Percent of Total Sales 15% 50 % 10% 25% Contribution Margin Ratio 80 % 25% 80 % 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 $ 110,000 The company has fixed costs of 1,090,000 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 2,424,242 Appetizerss Main entrees Desserts Beverages Sales from Each Product 363,636 1212121 242,424 606,060
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
