Owner Shen Lu is considering franchising her Noodles by Lu restaurant concept. She believes people will pay $ 5.00 for a large bowl of noodles. Variable costs are $ 2.00 per bowl. Lu estimates monthly fixed costs for a franchise at $ 16500.

Owner Shen Lu is considering franchising her Noodles by Lu restaurant concept. She believes people will pay $5.00 for a large bowl of noodles. Variable costs are $2.00 per bowl. Lu estimates monthly fixed costs for a franchise at $16,500. 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 = 0 Requirement 2. Lu believes most locations could generate $95,000 in monthly sales. Is franchising a good idea for Lu if franchisees want a minimum monthly operating income of $33,000? 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 $33,000. (Abbreviation used: CM = contribution margin.) = Required sales in dollars = % Is franchising a good idea for Lu if franchisees want a minimum monthly operating income of $33,000? Since the predicted monthly sales of $95,000 are the amount of sales necessary to generate a minimum monthly operating income of $33,000, Lu's franchising concept a good idea