The Sandhill Inn is a restaurant that specializes in southwestern style meals in a moderate price...
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The Sandhill Inn is a restaurant that specializes in southwestern style meals in a moderate price range. Anthony Walker, the manager of Sandhill, has determined that during the past two years the sales mix and contribution margin ratio of its offerings have been as follows: Percent of Total Sales Contribution Margin Ratio Appetizers 10% 60% Main entrees 60% 30% Desserts 10% 50% Beverages 20% 80% Anthony is considering a variety of options to try to improve the restaurant's profitability. Her goal is to generate a target operating income of $171,600. The company has fixed costs of $1.232,400 per year. (a) Calculate the total restaurant sales and the sales of each product line that would be necessary in order to achieve the desired target operating income. Appetizers Entrees Desserts $ Beverages $ Total sales The Sandhill Inn is a restaurant that specializes in southwestern style meals in a moderate price range. Anthony Walker, the manager of Sandhill, has determined that during the past two years the sales mix and contribution margin ratio of its offerings have been as follows: Percent of Total Sales Contribution Margin Ratio Appetizers 10% 60% Main entrees 60% 30% Desserts 10% 50% Beverages 20% 80% Anthony is considering a variety of options to try to improve the restaurant's profitability. Her goal is to generate a target operating income of $171,600. The company has fixed costs of $1.232,400 per year. (a) Calculate the total restaurant sales and the sales of each product line that would be necessary in order to achieve the desired target operating income. Appetizers Entrees Desserts $ Beverages $ Total sales
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