Before tranchising her Noodle Time restaurant concept, owner Yang Wong had made the following assumptions (Click the icon to view more information.) (Click the icon to view the assumptions.) Read the requirements 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 per unit Times Average sales volume units Contribution margin Less Fixed expenses Operating income 4.55) 5500 25025 8400 16625 Requirement 2. Assuming that the price out and advertising campaign are successful at increasing volume to the projected level, wil the franchisees still earn their target profit of $7,000 per month? Show your calculations Identify the formula labels and compute the operating income after the changes Break even point Times: Variable expenses Contribution margin Less: New fixed expenses Operating income 5765 5705 556 460 Cutting the sales price and advertising will allow the franchise owners to eam ther target profits of $7,000 per month Before tranchising her hoodie Time restaurant concept, owner Yang Wong had made the folowing assumptions Click the icon to view the assumptions) (Click the icon to view inces information) Read the reguements Requirement 1. What was the average restaurants operating income before these changes? identity the formula labels and compute the operating income before the changes Contribution margin per unit Times Average sales volume ursts 455 5500 25020 Contribution margin Less Fixed expenses Operating income 8400 16625) Requirement 2. Assuming that the price cut and advertising campaign are success at increasing volume to the projected level, will the franchisees sit eam their target profit of $7,000 per month? Show your ans Identify the formula labels and compute the operating income after the changes Break even pont Variable expenses Times Contribution margin Less New Sxed expenses Operating Income 5705) 5765 556 465 07 Cutting the sales price and advertising wil allow the franchise owners to cam their target profits of $7.000 per month Before franchising her Noodie Time restaurant concept, owner Yang Wong had made the following assumptions. (Click the icon to view the assumptions) (Click the icon to view more information) More info Wong believed people would pay $0.50 for a large bowl of noodles, Variable costs would be $1.95 a bowl creating a contribution margin of $4.55 per bowt Yang Wong estimated monthly fixed costs for franchisees at $0.400. Franc wanted a minimum monthly operating income of $7.000 More info Wong did franchise her restaurant concept. Because of Noodle Time's succes Noodles 'n More has come on the scene as a competitor To maintants market share, Noodle Time will have to lower is sales price to $6.00 per bet Al he same time, Noodle Time hopes to increase each restaurants votume to 8.000 bowls per month by embarking on a marketing campaign. Each franchise will have to contribute $500 per month to cover the advertising costs Pro to e changes, most locations were selling 5.500 bowls per month Print Done Requirement 2. Assuming that the price cut and advertising campaign are successful at increasing v Identify the formula labels and compute the operating income after the changes Print Done four oculations 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 Times: Average sales volume units Contribution margin Less: Fixed expenses Operating income 455 5500 25005 8400 10025 Requirement 2. Assuming that the price out and advertising campaign are successful at increasing volume to the projected level, will the fanchisees steam their target profit of $7.000 per month? Show your cat Identify the formula labels and compute the operating income after the changes Break even point Times Variable expenses Contribution margin Less: New fixed expenses Operating income 5765 5765 566 465 Cutting the sales price and advertising will allow the franchise ownsirs to eam their target profits of $7,000 per average restaurant's operating income before these changes? I compute the operating income bef ume units 4 More info 55 25 GOOD 84 16 at the price cut and advertising can compute the operating income aft Wong believed people would pay $6.50 for a large bowl of noodles. Variable costs would be $1.95 a bowl creating a contribution margin of $4.55 per bowl. Yang Wong estimated monthly fixed costs for franchisees at $8,400. Franchisees wanted a minimum monthly operating income of $7,000. 20 57 57 555 465 67 Print Done The franchise owners to earn their target profits of $7,000 per month. et profit of $7,000 per month? Show your calculations erage restaurant's operating income before these changes? mpute the operating income bef units More info 55 250 84 166 e price cut and advertising can mpute the operating income aft 57 57 Wong did franchise her restaurant concept. Because of Noodle Time's success, Noodles 'n More has come on the scene as a competitor. To maintain its market share, Noodle Time will have to lower its sales price to $6.00 per bowl. At the same time, Noodle Time 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 $500 per month to cover the advertising costs. Prior to these changes, most locations were selling 5,500 bowls per month et profit of $7,000 per month? Show your calculations tising will 5 Print Done 4 67 allow the franchise owners to earn their target profits of $7,000 per month