Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. suppose that paul reduces the selling price on ent

Suppose that Paul reduces the selling price on entrees and increases fixed costs as proposed...

70.2K

Verified Solution

Question

Accounting

image
image
image
Suppose that Paul reduces the selling price on entrees and increases fixed costs as proposed in part (b), but customers are not swayed by the marketing efforts and the sales mix remains what it was in part (a). 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 eg. 10.251 and final answers to O decimal places, eg. 2,510.) Total restaurant sales 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 $114,000. The company has fixed costs of $1,076,400 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 eg. 0.251 and final answers to 0 decimal places, eg. 2,510.) Total restaurant sales $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

nework Suppose that the pairwise comparison method Num is used on the following preference table...

Basic Math
Q

Segawa syndrome is a genetic mutation that affects the synthesis of dopamine in the body. People...

Medical Sciences
Q

what are the six steps of a statistical inverstgation? describe each step in context of the...

Basic Math
Q

1.As digital marketing and advertising gets more and more personalised, will we see less mass-market sales...

Accounting
Q

During steps 6 and 7 of glycolysis, where does the energy come from to create...

Biology
Q

2 Mr Mann s cylindrical fish tank has a base area of 102 cm and...

Geometry
Q

Consider the following system of linear inequalities. Which are thevertices of the solution region?2x?y+42?y-2x-4?yA) (0,...

Basic Math
Q

e following histogram shows the results of a personality questionnaire given to people applying for...

Statistics
Q

3 Jamie s parents gave him some money at the start of the school the...

Calculus
Q

What is the solution set to the inequality 5 x 2 x 4 0 x...

Algebra
Q

Select a small firm such as a florist shop, building contractor, super market, tooling workshop,...

Accounting
Q

The vast majority of SPEs are VIEs, however VIEs need not be SPEs. Explain this...

Accounting