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Owner Kay Fay is considering franchising ber Happy Wok restaurant concept She beleves people will pay $5.00 for a large bowl of noodes. Variable costs
Owner Kay Fay is considering franchising ber Happy Wok restaurant concept She beleves people will pay $5.00 for a large bowl of noodes. Variable costs ase $150 a bowt: Fay ostinates montiy foxed costs for franchisees at $8,400. Read the requirements Requirement 1. Find a franchisee's breakevon sales in dollars. Begin by identifying the formula to compute the sales in units at various kvels of operating income using the contricution margin approsch. Ereakeven sabes in dollarm Requirements 1. Find a tranchisee' breakeven males in doltars. 2. Is franchising a good idea for Fay if franchisees want a minimum monthly operating income of 58,750 and Fay beleves that moet locatens could. generate set oco in monthy sales
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