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The Wildhorse Inn is a restaurant that specializes in southwestern style meals in a moderate...

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Accounting

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The Wildhorse Inn is a restaurant that specializes in southwestern style meals in a moderate price range. Chris Anderson, the manager of Wildhorse, 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% Chris is considering a variety of options to try to improve the restaurant's profitability. Her goal is to generate a target operating income of $176,800. The company has fixed costs of $1,086,800 per year. Suppose that Chris drops the selling price on entrees and increases fixed costs by 50%, but customers are not swayed by the marketing efforts and the product mix remains as given in the question statement. 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. (Round answers to the nearest whole dollar, e.g. 5,275.) Appetizers $ Entrees ta Desserts ta $ Beverages ta $ Total sales $ 3135000

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