A restaurant has three main products. Fixed costs are $397,000 and the tax rate is 35%....

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A restaurant has three main products. Fixed costs are $397,000 and the tax rate is 35%. Other financial information is as follows: Item drinks meals desserts Average Selling price per item (in $) Margin per item 10 60% 25 10 Average Contribution 20% 50% Total Sales Dollars (in % of total sales) 40% 50 % 10% What are total sales (in dollars) needed to make an after tax profit of $200,000, assuming that the sales mix remains constant? How many drinks would they need to serve per week to make an after-tax profit of $200,000? (assume 52 weeks in a year) A restaurant has three main products. Fixed costs are $397,000 and the tax rate is 35%. Other financial information is as follows: Item drinks meals desserts Average Selling price per item (in $) Margin per item 10 60% 25 10 Average Contribution 20% 50% Total Sales Dollars (in % of total sales) 40% 50 % 10% What are total sales (in dollars) needed to make an after tax profit of $200,000, assuming that the sales mix remains constant? How many drinks would they need to serve per week to make an after-tax profit of $200,000? (assume 52 weeks in a year)

Answer rating: 100% (QA)

The total contribution margin Drinks Contribution Margin 60 of 10 6 Meals Contribution Margin 2... View the full answer