The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in south western 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.


Percent of Total Sales Contribution Margin Ratio

Appetizers 15% 70%

Main entrees 50% 25%

Desserts 10% 80%

Beverages 25% 80%

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 $116,000. The company has fixed costs of $1,417,000 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.