Owner Chung Li Soo is considering franchising her Happy Noodles restaurant concept. She believes people will...
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Owner Chung Li Soo is considering franchising her Happy Noodles restaurant concept. She believes people will pay $5.00 for a large bowl of noodles. Variable costs are $1.50 a bowl. Soo estimates monthly fixed costs for franchisees at $8,400. Read the requirements. Requirement 1. Find a franchisee's breakeven sales in dollars. Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. Requirements 1. Find a franchisee's breakeven sales in dollars. 2. Is franchising a good idea for Soo if franchisees want a minimum monthly operating income of $8,750 and Soo believes that most locations could generate $24,000 in monthly sales? = Breakeven sales in dollars X Owner Chung Li Soo is considering franchising her Happy Noodles restaurant concept. She believes people will pay $5.00 for a large bowl of noodles. Variable costs are $1.50 a bowl. Soo estimates monthly fixed costs for franchisees at $8,400. Read the requirements. Requirement 1. Find a franchisee's breakeven sales in dollars. Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. Requirements 1. Find a franchisee's breakeven sales in dollars. 2. Is franchising a good idea for Soo if franchisees want a minimum monthly operating income of $8,750 and Soo believes that most locations could generate $24,000 in monthly sales? = Breakeven sales in dollars X
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1 To find a franchisees breakeven sales in dollars we can use the contribution margin approach The c... View the full answer
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