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Owner Yang Wong is considering franchising her Noodle Time restaurant concept. She believes people will pay $6.50 for a large bowl of noodles. Variable costs
Owner Yang Wong is considering franchising her Noodle Time restaurant concept. She believes people will pay $6.50 for a large bowl of noodles. Variable costs are $1.95 a bowl. Wong estimates monthly fixed costs for franchisees at $8,400. 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 X Requirements 1. Find a franchisee's breakeven sales in dollars. 2. Is franchising a good idea for Wong if franchisees want a minimum monthly operating income of $7,000 and Wong believes that most locations could generate $26,000 in monthly sales? Print Done
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