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Owner Shen Lu is considering franchising her Noodles by Lu restaurant concept. She believes people will pay $6.00 for a large bowl of noodles. Variable

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Owner Shen Lu is considering franchising her Noodles by Lu restaurant concept. She believes people will pay $6.00 for a large bowl of noodles. Variable costs are $1.50 per bowl. Lu estimates monthly fixed costs for a franchise at $18,000. Read the requirements. Requirement 1. Use the contribution margin ratio approach to find a franchise's bretakeven 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.) Requirement 2. Lu believes most locations could generate $58,500 in monthly sales. Is franchising a good idea for Lu if franchisees want a minimum monthly operating income of $16,500 ? Explain your answer. Begin by showing the formula and then entering the amounts to calculate the targeted sales dollars required to earn the minimum monthly operating income of $16,500. (Abbreviation used: CM= contribution margin.) \begin{tabular}{lll} (+ & )+ & = Required sales ij dollars \\ (+ & 1+ & %= \end{tabular} Requirement 2. Lu believes most locations could generate $58,500 in monthly sales. Is franchising a good idea for Lu if franchisees want a minimum monthly operating income of $16,500 ? Explain your answer. Begin by showing the formula and then entering the amounts to calculate the targeted sales dollars required to earn the minimum monthly operating income of $16,500. (Abbreviation used: CM= contribution margin.) \begin{tabular}{lll} (+ & )+ & = Required sales in dollars \\ (+ & )+ & %= \end{tabular} Is franchising a good idea for Lu if franchisees want a minimum monthly operating income of $16,500 ? Explain your answer. Since the predicted monthly sales of $58,500 are the amount of sales necessary to generate a minimum monthly operating income of $16,500, Lu's franchising concept a good idea

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