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Complete the requirements Owner Sue Lan is considering franchising her Noodles by Lan restaurant concept. She believes people will pay $8.00 for a large bowl
Complete the requirements
Owner Sue Lan is considering franchising her Noodles by Lan restaurant concept. She believes people will pay $8.00 for a large bowl of noodles. Variable costs are $4 80 per bowl. Lan estimates monthly fixed costs for a franchise at $6,000 Read the requirements Requirement 1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars using the contribution margin approach. (Enter a "0" for any zero balances. Abbreviation used: CM = contribution margin.) ( D ) - Required sales in dollars C Requirement 2. Lan believes most locations could generate 587,500 in monthly sales. Is franchising a good idea for Lanif franchisees want a minimum monthly operating income of $24,000? Begin by showing the formula and then entering the amounts to calculate the targeted sales dollars required to earn the minimum monthly operating income of $24,000. (Abbreviation used: CM = contribution margin.) = Required sales in dollars Is franchising a good idea for Lan if franchisees want a minimum monthly operating income of $24,000? Since the predicted monthly sales of $87,500 are the amount of sales necessary to generate a minimum monthly operating income of $24,000, Lan's franchising concept a good idea
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