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Owner Kay Fay is considering franchising her Global Wok restaurant concept. She believes people will pay $5.00 for a large bowl of noodles. Variable costs
Owner Kay Fay is considering franchising her Global Wok restaurant concept. She believes people will pay $5.00 for a large bowl of noodles. Variable costs are $1.50 a bowl. Fay estimates monthly fixed costs for franchisees at $8,400 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. - Breakeven sales in dollars The breakeven sales in dollars is $ Requirement 2. Is franchising a good idea for Fay if franchisees want a minimum monthly operating income of $8,750 and Fay believes that most locations could generate $24,000 in monthly sales? The target sales in dollars to reach the minimum monthly operating income for franchises is S Kay Fay's franchising concept Videa. She expects most locations Vthe sales required to earn the target profit
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