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Owner Sue Lo is considering franchising her Happy Wok restaurant concept. She believes people will pay $6.25 for a large bowl of noodles. Variable costs
Owner Sue Lo is considering franchising her Happy Wok restaurant concept. She believes people will pay $6.25 for a large bowl of noodles. Variable costs are $2.50 a bowl. Lo estimates monthly fixed costs for franchisees at $8,250. X i - Requirements pme using the contribution margin approach. = Breakeven sales in dollars 1. Find a franchisee's breakeven sales in dollars. 2. Is franchising a good idea for Lo if franchisees want a minimum monthly operating income of $6,600 and Lo believes that most locations could generate $24,000 in monthly sales
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