Before franchising her Noodles Galore restaurant mnnent owner Mei Lai had made the following assumptions. (1. (Click the icon to view the assumptions.) (Click the icon to view more information.) Read the More info Lai believed people would pay $5.00 for a large bowl of noodles. Variable costs would be $2.00 a bowl creating a contribution margin of $3.00 per bowl. Mei Lai Requirement 1. What was the average restaurant's operating income before these changes? estimated monthly fixed costs for franchisees at $8,400. Franchisees wanted a Identify the formula labels and compute the operating income before the changes. minimum monthly operating income of $6,000. Qperatury mivine Identify the formula labels and compute the operating income after the changes. More info Lai did franchise her restaurant concept. Because of Noodles Galore' success. Tasty Noodles has come on the scene as a competitor. To maintain its market share, Noodles Galore will have to lower its sales price to $4.50 per bowl. At the same time, Noodles Galore 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. 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 $6,000 per month? Show your calculations. Cutting the sales price and advertising allow the franchise owners to earn their target profits of $6,000 per month