Question: please help with part B and show how your got those answer thank you! Problem 19-3A (Part Level Submission) The Grand Inn is a restaurant
Problem 19-3A (Part Level Submission) 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 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 $115,000. The company has fixed costs of $1,142,000 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 0 decimal places, e.g. 2,510.) d Your answer is incorrect. Try again. Paul believes the restaurant could greatly improve its profitability by reducing the complexity and selling price of its entrees to increase the number of dlients that it serves. It would then more heavily market its appetizers and beverages. He is proposing to reduce the contribution margin ratio on the main entrees to 10% by dropping the average selling price. He envisions an expansion of the restaurant that would increase fioxed costs by $585,000. At the same time, he is proposing to change the sales mix to the following Compute 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. 10.25I and final answers to 0 decimal places, e.g 2,510.)
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