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Owner Fay Woo is considering franchising her Noodles Galore restaurant concept. She believes people will pay 56.25 for a large bowl of noodles. Variable costs
Owner Fay Woo is considering franchising her Noodles Galore restaurant concept. She believes people will pay 56.25 for a large bowl of noodles. Variable costs are $2.50 a bowl. Woo estimates monthly fixed costs for franchisees at S8,250. Read the requirements. Requirement 1. Find a franchisee's breakeven sales in dollars. Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. Fixed expenses Operating income ) + Contribution margin ratio - Breakeven sales dollars The breakeven sales in dollars is $ 13,750 Requirement 2. Is franchising a good idea for Woo if franchisees want a minimum monthly operating income of $6,600 and Woo believes that most locations could generate $26.000 in monthly sales? The largel sales in dollars to reach the minimum monthly operating income for franchises is Requirements 1. Find a franchisee's breakeven sales in dollars. 2. Is franchising a good idea for Woo if franchisees want a minimum monthly operating income of $6,600 and Woo believes that most locations could generate $26,000 in monthly sales? Print Done
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