Owner Sue Lan is considering franchising her Noodles by Lan restaurant concept. She believes people will pay $$11\mathrm{.}00$ for a large bowl of noodles. Variable costs are $$5\mathrm{.}50$ per bowl. Lan 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.$)$

Requirement $2.$ Lan believes most locations could generate $$72,000$ in monthly sales. Is franchising a good idea for Lan, if franchisees want a minimum monthly operating income of $$13,500?$ 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 $$13,500.($Abbreviation used: $CM=$ contribution margin.$)$

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Is franchising a good idea for Lan if franchisees want a minimum monthly operating income of $$13,500?$ Explain your answer.

Since the predicted monthly sales of $$72,000$ are the amount of sales necessary to generate a minimum monthly operating income of $$13,500,$ Lan's franchising concept a good idea.