Before franchising her Global Chopsticks restaurant concept, owner Sung Chi had made the following assumptions (Click the icon to view the assumptions) (Click the icon to view more information) Read the requirements In Requirement 1. What was the average restaurant's operating income before these changes? Identify the formula labels and compute the operating income before the changes Contribution margin Less Operating income Choose from any list or enter any number in the input fields and then click Check Answer 2 parts Clear All remaining Check Answer 2 of 4 (0 complete HW Score: 0%, 0 of 4 pts -24 A (similar to) Question Help ore franchising her Global Chopsticks restaurant concept, owner Sung Chi had made the following assumptions (Click the icon to view the assumptions) (Click the icon to view more information) and the requirements uirement 1. What was the average restaurant's operating income before these changes? notify the formula labels and compute the operating income before the changes More Info - X tribution margin 5 arating income Chi believed people would pay $500 for a large bowl of noodles Variable costs would be $1.50 a bowl creating a contribution margin of $3.50 per bowl Sung Chi estimated monthly fixed costs for franchisees at $8.400 Franchisees wanted a minimum monthly operating income of $8,750 Print Done se from any list or enter any number in the input fields and then click Check Answer. s and compute the operating income before the changes i More Info - - X Chi did franchise her restaurant concept. Because of Global Chopsticks' success, Fresh Noodles has come on the scene as a competitor. To maintain its market share, Global Chopsticks will have to lower its sales price to $4.50 per bowl. At the same time, Global Chopsticks hopes to increase each restaurant's volume to 7,500 bowls per month by embarking on a marketing campaign. Each franchise will have to contribute $600 per month to cover the advertising costs. Prior to these changes, most locations were selling 7,000 bowls per month. Print Done enter any number in the input fields and then click Check Answer. Clear All Check Answer and compute the operating income before the changes Requirements - X 1. What was the average restaurant's operating income before these changes? 2. Assuming that the price cut and advertising campaign are successful at increasing volume to the projected level, will the franchisees still earn their target profit of $8,750 per month? Show your calculations Print Done ter any number in the input fields and then click Check Answer. Clear All Check AI BI
