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Owner Shan Lo is considering franchising her Wok Express restaurant concept She believes people wil pay $6.00 for a large bowl of noodles. Variable costs

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Owner Shan Lo is considering franchising her Wok Express restaurant concept She believes people wil pay $6.00 for a large bowl of noodles. Variable costs are SI.80a bow Lo estimates monthly fixed costs for franchisees at $7,800 Find a franchisee's breakeven sales in dollars Is franchising a good Pea for Lo if franchisees wart a minimum monthly operating income of $7, 250 and Lo believes that most locations could generate $26, 000 n monthly sales? Find a franchisee's breakeven sales in dollars Begin by identifying the formula to compute the sales in ones at various levels of operating income using the contribution margin approach The breakeven sales in dollars is Is franchising a good idea for Lo if franchises wont n minimum monthly operating income of $7,250 and Lo believes that most Portions could generate $28,000 In monthly sales? The target sales In dollars to reach the minimum monthly operating income for franchises is Shan Lo's franchising concept She expects most locations the sales required to earn the target profit

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