Owner LeiWong is considering franchising her Oriental Express

restaurant concept. She believes people will pay $6.00 for a large bowl of noodles. Variable costs are $2.10 a bowl.

Wong estimates monthly fixed costs for franchisees at $7,800.

1.Find afranchisee's breakeven sales in dollars.

2.Is franchising a good idea for Wong if franchisees want a minimum monthly operating income of $6,500 and Wong

believes that most locations could generate $25,000 in monthlysales?