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Owner Shan Lo is considering franchising her Noodles by Lo restaurant concept. She believes people will pay $5.00 for a large bowl of noodles. Variable
Owner Shan Lo is considering franchising her Noodles by Lo restaurant concept. She believes people will pay $5.00 for a large bowl of noodles. Variable costs are $2.00 per bowl. Lo estimates monthly fixed costs for a franchise at $10.500. Read the requirements Requirement 1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars using the contribution margin approach. (Enter a "0" for any zero balances. Abbreviation used: CM = contribution margin. = Required sales dollars CM per unit CM ratio Fixed costs Variable costs Requirements 1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. 2. Lo believes most locations could generate $50,000 in monthly sales. Is franchising a good idea for Lo if franchisees want a minimum monthly operating income of $12,000? Explain your answer. Print Done Choose from any drop-down list and then click Check Answer. ? 4 parts remaining Clear All Final Check Owner Shan Lo is considering franchising her Noodles by Lo restaurant concept. She believes people will pay $5.00 for a large bowl of noodles. Variable costs are $2.00 per bowl. Lo estimates monthly fixed costs for a franchise at $10,500. Read the requirements Requirement 1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars using the contribution margin approach. (Enter a "0" for any zero balances. Abbreviation used: CM = contribution margin.) = Required sales in dollars CM per unit CM ratio Sales price Target profit Requirements 1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. 2. Lo believes most locations could generate $50,000 in monthly sales. Is franchising a good idea for Lo if franchisees want a minimum monthly operating income of $12,000? Explain your answer. Print Done Choose from any drop-down list and then click Check Answer. ? parts remaining Clear All Final Check
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