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Owner Sue Lo is considering franchising her Oriental Joy restaurant concept. She believes people will pay $5.75 for a large bowl of noodles. Variable costs

image text in transcribed Owner Sue Lo is considering franchising her Oriental Joy restaurant concept. She believes people will pay $5.75 for a large bowl of noodles. Variable costs are $2.30 a bowl. Lo estimates monthly fixed costs for franchisees at $9,000. Read the requirements. Requirement 1. Find a franchisee's breakeven sales in dollars. Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. Breakeven sales in dollars The breakeven sales in dollars is Requirement 2. Is franchising a good idea for Lo if franchisees want a minimum monthly operating income of $5,700 and Lo believes that most locations could generate $26,000 in monthly sales? The target sales in dollars to reach the minimum monthly operating income for franchises is

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