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1. Find a franchisee's breakeven sales in dollars. 2. Is franchising a good idea for Wong if franchisees want a minimum monthly operating income of
1. Find a franchisee's breakeven sales in dollars. 2. Is franchising a good idea for Wong if franchisees want a minimum monthly operating income of $5,700 and Wong believes that most locations could generate $26,000 in monthly sales? Owner Lei Wong is considering franchising her Global Chopsticks restaurant concept. She believes people will pay $5.75 for a large bowl of noodles. Variable costs are $2.30 a bowl. Wong estimates monthly fixed costs for franchisees at $9,000. Read the requirements CERE 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. Breakeven sales in dollars
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