Owner Sue Lan is considering franchising her Noodles restaurant concept. She believes people will pay $150.00 for a large bowl of noodles. Variable costs are $60 per bowl. Lan estimates monthly fixed costs for a franchise at $126,000.

1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. (round your answer to 2 decimal places)

2. Lan believes most locations could generate $362500 in monthly sales. Is franchising a good idea for Lan if franchisees want a minimum monthly operating income of $90,000?