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Before franchising her Noodles Galore restaurant concept, owner Lei Wong had made the following assumptions. (i) (Click the icon to view the assumptions.) (i) (Click

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Before franchising her Noodles Galore restaurant concept, owner Lei Wong had made the following assumptions. (i) (Click the icon to view the assumptions.) (i) (Click the icon to view more information.) Read the requirements. More info Wong did franchise her restaurant concept. Because of Noodles Galore' success, Noodles Plus has come on the scene as a competitor. To maintain its market share, Noodles Galore will have to lower its sales price to $5.75 por bowl. At the same time, Noodles Galore hopes to increase each restaurant's volume to 6,000 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 5,500 bowls per month. Read the requirements. More info Identifu the formula lahels and romeute the eneratine inenme hefres the changes. Wong believed people would pay $6.25 for a large bowl of nocdles. Variable costs would be $2.50 a bowt creating a contribution margin of $3.75 per bow. Lei Wong estimated monthily foxed costs for franchisees at $8.250. Franchisees wanted a minimum monthly operating income of $6,600. Requirement 2. Assuming that the price cut and advertaing campaign are successful at increasing volume to the projected level, wil the franchisees stif earn their target proft of $6.600 per mone Show your calculations. identity the formula tabels and compule the operating income aher the changes. Cutting the saies price and odvertsing alow the franchise owners to eam their target profits of 56,600 per month. Before franchising her Noodles Galore restaurant concept, owner Lei Wong had made the following assumptions. (Click the icon to view the assumptions.) (i) (Click the icon to view more information.) Read the requirements. Requirements 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 $6,600 per month? Show your calculations

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