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1. Owner Ms. Ling is considering franchising her Noodles restaurant concept. She believes people will pay $7.50 for a large bowl of noodles. Variable costs

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1. Owner Ms. Ling is considering franchising her Noodles restaurant concept. She believes people will pay $7.50 for a large bowl of noodles. Variable costs are $3.00 per bowl. Ling estimates monthly fixed costs for a franchise at $9,000. Requirements: A. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars and in units. B. Ling believes most locations could generate $40,000 in monthly sales. Is franchising a good idea for Ling if franchisees want a minimum monthly operating income of $13,500

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