Computing a change in breakeven sales Owner Shan Lo is considering franchising her Noodles by Lo restaurant concept. She believes people will pay $6.50 for a large bowl of noodles. Variable costs arc $3.25 per bowl. Lo estimates monthly fixed costs for a franchise at $3,000. Requirements Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. Lo believes most locations could generate $34, 500 in monthly sales. Is franchising a good idea for Lo if franchisees want a minimum monthly operating income of $13, 500