The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in south western 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% 70%
Main entrees 50% 25%
Desserts 10% 80%
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 $116,000. The company has fixed costs of $1,417,000 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.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in south western style meals in a moderate price range. Paul Weld, the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If a corporation operates two divisions that supply one another, and each division is located in a different country, then transfer prices are: ___.
Answers (1)
Theo founder Joe Whinney believes that that a business should benefit every partner throughout the organization's entire supply chain. This focus on the well-being of others is characteristic of all the following except:a. Justice b. Virtue Ethics c.
Answers (1)
The work breakdown structure can include specifications regarding size, color, weight, or performance parameters, such as speed, uptime, throughput, processing time, or operating temperature range, that the project result must satisfy? a. True b.
Answers (1)
When using normal costing, the total production cost of a job is composed of: (A) direct material and direct labor. (B) direct material, direct labor, manufacturing overhead, and outlays for selling costs.
Answers (2)
Jamie and Maria invested all their savings in a small pizzeria they opened outside the University of Western Kentucky. They operated the business as a general partnership.
Answers (1)
New Questions in Business
JRN Enterprises just announced that it plans to cut its dividend from $3.50 to $2.50 per share and use the extra funds to expand its operations.
Answers (1)
Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $12,000,000 and total direct labor hours to be 320,000 hours. Calculate Sykora's predetermined overhead rate.
Answers (1)
Appalachian mountain goods has paid increasing dividends of $.10, $.12, $.15, and $.20 a share over the past four years, respectively.
Answers (1)
What type of skills tends to be equally important at all levels of management? a. technical skills b. human skills c. decisional skills d. motivation to manage e. conceptual skills
Answers (1)
Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $325,000, and its year-end receivables were $60,000. If its DSO is less than the 45-day credit period, then customers are paying on time.
Answers (1)