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Owner Chung Li Soo is considering franchising her Noodles Galore restaurant concept. She believes people will pay $5.?5 for a large bowl of noodles. Variable
Owner Chung Li Soo is considering franchising her Noodles Galore restaurant concept. She believes people will pay $5.?5 for a large bowl of noodles. Variable costs are $2.30 a bowl. Soc estimates monthly fixed costs for franchisees at $9,000. Read the muirements. Requirement 1. Find a franchisee's breakeven sales in dollars. Begin by identifying the formula to compute the les in units at various levels of operating income using the contribution margin approach. ( + Contribution margin per unit J + = Breakeven sales in dollars Requirements 1. Find a franchisee's breakeven sales in dollars. 2. Is franchising a good idea for Soc if franchisees want a minimum monthly operating income of $5,700 and Soc believes that most locations could generate $25000 in monthly les
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