Sales Mix Analysis Delving further into the operations, another branch which is in the restaurant business is brought into focus. Management desires a net income of $ 135,000 from this division which has fixed costs of $ 300,000 per year. The following information about the operations of the division for the past two years has been supplied. (please refer to image) You are required to prepare a report to show : 1. The total sales required to achieve the desired net income 2. The total sales of each product required to meet the objectiv
Sales Mix Analysis Delving further into the operations, another branch which is in the restaurant business is brought into focus. Management desires a net income of $ 135,000 from this division which has fixed costs of $ 300,000 per year. The following information about the operations of the division for the past two years has been supplied. (please refer to image) You are required to prepare a report to show : 1. The total sales required to achieve the desired net income 2. The total sales of each product required to meet the objectiv
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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) Sales Mix Analysis
Delving further into the operations, another branch which is in the restaurant business is brought into focus.
Management desires a net income of $ 135,000 from this division which has fixed costs of $ 300,000 per year.
The following information about the operations of the division for the past two years has been supplied.
(please refer to image)
You are required to prepare a report to show :
1. The total sales required to achieve the desired net income
2. The total sales of each product required to meet the objective.
Transcribed Image Text:Sales Mix
Contribution
Percentage
Margin Ratio
Appetizers
30%
60%
Main Entrees
50%
25%
Desserts
10%
50%
Beverages
10%
80%
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