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A restaurant needs to achieve a 10% return on an investment of $10,000,000 (the restaurant has main products it sells: food, beverage and gift shop items) and cover all costs. Note the following information: Food generates 70% of sales and the food cost percent is 30. Beverages generate 25% of sales with a CMR of .82. Gift store items account for the rest of the sales with a CMR of .8. The fixed costs are $1,500,000 annually. What is the contribution margin ratio (CMR) for food 0.70 0.30 0.82 None of the above

A restaurant needs to achieve a 10% return on an investment of $10,000,000 (the restaurant has main products it sells: food, beverage and gift shop items) and cover all costs. Note the following information: Food generates 70% of sales and the food cost percent is 30. Beverages generate 25% of sales with a CMR of .82. Gift store items account for the rest of the sales with a CMR of .8. The fixed costs are $1,500,000 annually. What is the contribution margin ratio (CMR) for food 0.70 0.30 0.82 None of the above

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A restaurant needs to achieve a 10% return on an investment of $10,000,000 (the restaurant has main products it sells: food, beverage and gift shop items) and cover all costs.

Note the following information:

Food generates 70% of sales and the food cost percent is 30.

Beverages generate 25% of sales with a CMR of .82.

Gift store items account for the rest of the sales with a CMR of .8.

The fixed costs are $1,500,000 annually.

What is the contribution margin ratio (CMR) for food

0.70
0.30
0.82
None of the above 

 

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