The Sandhill Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in...
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The Sandhill Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager of Sandhill, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows. Sales mix is determined using total sales dollars. Percent of Contribution Total Sales Margin Ratio Appetizers 15 % 50 % Main entrees 50 % 25 % Desserts 10 % 50 % 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 $114,660. The company has fixed costs of $1,031,940 per year. Calculate the total restaurant sales and the sales of each product line that would be necessary to achieve the desired target net income. (Round intermediate calculations to 3 decimal places e.g. O.251 and final answers to O decimal places, e.g. 2,510.) Total restaurant sales Sales from Each Product Appetizers 2$ Main entrees 2$ Desserts $ Beverages $ The Sandhill Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager of Sandhill, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows. Sales mix is determined using total sales dollars. Percent of Contribution Total Sales Margin Ratio Appetizers 15 % 50 % Main entrees 50 % 25 % Desserts 10 % 50 % 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 $114,660. The company has fixed costs of $1,031,940 per year. Calculate the total restaurant sales and the sales of each product line that would be necessary to achieve the desired target net income. (Round intermediate calculations to 3 decimal places e.g. O.251 and final answers to O decimal places, e.g. 2,510.) Total restaurant sales Sales from Each Product Appetizers 2$ Main entrees 2$ Desserts $ Beverages $
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Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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