Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Sector Accounting And Auditing In EuropeThe Challenge Of Harmonization

Authors: I. Brusca, E. Caperchione, S. Cohen, F Manes Rossi

3rd Edition

1137461330, 9781137461339

More Books

Students also viewed these Accounting questions