E726A (book/static) Before franchising her Noodle Time restaurant concept, owner Yang Wong had made the following assumptions. 0 (Click the icon to view the assumptions.) Read the uirements. 0 (Click the icon to view more information.) 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. Times: Contribution margin Less: Operating income pm - remaining 0 More Info 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. Choose from any list or enter any number in the input fields and then click Check Answer. Clear All 35 Question Help a- CheckAnswer I { p E7-26A (book/static) a; Question Help a Before franchising her Noodle Time restaurant concept, owner Yang Wong had made the following assumptions. 0 (Click the icon to view the assumptions.) 0 (Click the icon to view more information.) Read the muirements. 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. o More Info Times: Contribution margin 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 xed costs for franchisees at $8,400. Franchisees wanted a minimum monthly operating income of $7,000. Less: Operating income Choose from any list or enter any number in the input fields and then click Check Answer. pans - remaining ClearAll CheCkAnswer I 4 p E7-26A (book/static) Question Help Before franchising her Noodle Time restaurant concept, owner Yang Wong had made the following assumptions. i (Click the icon to view the assumptions.) i (Click the icon to view more information.) 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. Times: Contribution margin Less: Operating income Choose from any list or enter any number in the input fields and then click Check Answer. ? 2 parts remaining Clear All Check AnswerE7-26A (book/static) Question Help Before franchising her Noodle Time restaurant concept, owner Yang Wong had made the following assumptions. i (Click the icon to view the assumptions.) i (Click the icon to view more information.) 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. i Requirements - X Times: Contribution margin Less: 1. What was the average restaurant's operating income before these changes? 2. Assuming that the price cut and advertising campaign are successful at Operating income increasing volume to the projected level, will the franchisees still earn their target profit of $7,000 per month? Show your calculations. Print Done Choose from any list or enter any number in the input fields and then click Check Answer. ? 2 parts remaining Clear All Check
