1. Find a franchisee's breakeven sales in dollars. 2. Is franchising a good idea for Lo if franchisees want a minimum monthly operating income of $7,000 and Lo believes that most locations could generate $23,000 in monthly sales? Owner Shan Lo is considering franchising her Global Wok restaurant concept. She believes people will pay $6.50 for a large bowl of noodles. Variable costs are $1.95 a bowl. Lo 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. Breakeven sales in dollars