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Owner Sue Lan is considering franchising her Noodles for a Lan restaurant concept She believes people will play $10.00 for a large bowl of noodles
Owner Sue Lan is considering franchising her Noodles for a Lan restaurant concept She believes people will play $10.00 for a large bowl of noodles Variable costs are $5,00 per bowl. Lan estimates monthly fixed costs for a franchise at $7.500. Requirements Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. Lan believes most locations could generate $77.500 n monthly sales. Is franchising a good idea for Lan if franchisees want a minimum monthly operating income of $30.000? 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. Lan believes most locations could generate $77.500 monthly sales. Is franchising a good idea for Lan if franchisees want a minimum monthly operating income of $30,000. 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 $30.000 (Abbreviation used CM = contribution margin.) Is franchising a good idea for Lan if franchisees want a minimum monthly operating income of $30.000? Since the amount of sales necessary to generate a minimum monthly operating income of $30.000. Lan's franchising concept a good Idea
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