Before franchising her Oriental Jay restaurant concept, owner Mei Lai had made the following assumptions (Click the icon to view the assumptions) (Click the icon to view more information) Read the requirements Requirement 1. What was the average restaurants operating income before these changes? Identify the formula labels and compute the operating income before the changes. Contribution margin per unit More Info Times: Average sales volume units Contribution margin Less: Fixed expenses Lai did franchise her restaurant concept. Because of Oriental Joy success, Noodles Galore has come on the scene as a competitor. To maintain its market Operating income share, Oriental Joy will have to lower its sales price to $5.00 per bowl. At the same time, Oriental Jay hopes to increase each restaurants volume to 7.000 bowls per month by embarking on a marketing campaign Each franchise will have to contribute 5600 per month to cover the advertising costs. Prior to these changes, most locations were selling 6.500 bowls per month Print Done Requirements 1. What was the average restaurant's operating income before these charges? 2. Assuming that the price out and advertising campaign are successful increasing volume to the projected level, will the franchises will earn their target profit of $3,500 per month? Show your calculations. Print Done Choose from any list or enter any number in the input fields and then click Check Answer Check Answer 2 Clear All 2 parts remaining Before franchising her Oriental Jay restaurant concept, owner Mei Lai had made the following assumptions (Click the icon to view the assumptions) (Click the icon to view more information) Read the requirements Requirement 1. What was the average restaurants operating income before these changes? Identify the formula labels and compute the operating income before the changes. Contribution margin per unit More Info Times: Average sales volume units Contribution margin Less: Fixed expenses Lai did franchise her restaurant concept. Because of Oriental Joy success, Noodles Galore has come on the scene as a competitor. To maintain its market Operating income share, Oriental Joy will have to lower its sales price to $5.00 per bowl. At the same time, Oriental Jay hopes to increase each restaurants volume to 7.000 bowls per month by embarking on a marketing campaign Each franchise will have to contribute 5600 per month to cover the advertising costs. Prior to these changes, most locations were selling 6.500 bowls per month Print Done Requirements 1. What was the average restaurant's operating income before these charges? 2. Assuming that the price out and advertising campaign are successful increasing volume to the projected level, will the franchises will earn their target profit of $3,500 per month? Show your calculations. Print Done Choose from any list or enter any number in the input fields and then click Check Answer Check Answer 2 Clear All 2 parts remaining
