2. Owner Fay Woo is considering franchising her Happy Noodles restaurant concept. She believes people will pay $5.00 for a large bowl of noodles. Variable costs are $2.00 a bowl. Woo estimates monthly fixed costs for franchisees at $8,400. Requirements 1. Use the contribution margin ratio shortcut approach to find a franchisee's break-even sales in dollars. 2. Is franchising a good idea for Woo if franchisees want a minimum monthly operating income of $6,000 and Woo believes most locations could generate $27,000 in monthly sales? Requirement 1. Use the contribution margin ratio shortcut approach to find a franchisee's break-even 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. (1) (2) (3) Break-even sales in dollars (Round your answer up to the nearest whole dollar.) The break-even sales in dollars is $ Requirement 2. Is franchising a good idea for Woo if franchisees want a minimum monthly operating income of $6,000 and Woo believes most locations could generate $27,000 in monthly sales? The target sales in dollars to reach the minimum monthly operating income for franchisees is $ Fay Woo's franchising concept (4). idea. She expects most locations (5) the sales required to earn the target profit. (1) O O Contribution margin per unit Contribution margin ratio Fixed expenses Operating income Units sold O Variable expenses (2) O O Contribution margin per unit O Contribution margin ratio O Fixed expenses Operating income O Units sold O Variable expenses (4) O is a good O is not a good (3) O O Contribution margin per unit O Contribution margin ratio O Fixed expenses Operating income O Units sold O Variable expenses