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Owner Shan Mu is considering franchising her Noodles by Mu restaurant concept. She believes people will pay $10.00 for a large bowl of noodles. Variable
Owner Shan Mu is considering franchising her Noodles by Mu restaurant concept. She believes people will pay $10.00 for a large bowl of noodles. Variable costs are $5.00 per bowl. Mu estimates monthly fixed costs for a franchise at $9,000. 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 - Requirements 1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. 2. Mu believes most locations could generate $61,500 in monthly sales. Is franchising a good idea for Muif franchisees want a minimum monthly operating income of $21,000
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