QUESTION 2A restaurant has three main products: drinks, meals and desserts. Fixed costs are $397,000.Other financial information is as follows:ItemdrinksmealsdessertsAverage Purchase (in $)102510Average Margin Total Sales Dollars (in %)40501060%20%70%What are total sales (in dollars) needed to make a profit of $200,000, assuming that the sales mix remainsconstant?How many drinks would they need to sell in order to make a profit of $200,000, assuming that the sales mixremains constant.

For calculating the break even sale with different products, we need use the following formula…

Answered: QUESTION 2 A restaurant has three main…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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