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Owner Yuning Zhu is considering franchising her Oodles of Noodles restaurant concept. She believes people will pay $7.00 for a large bowl of noodles.
Owner Yuning Zhu is considering franchising her Oodles of Noodles restaurant concept. She believes people will pay $7.00 for a large bowl of noodles. Variable costs are $2.45 a bowl. Zhu estimates monthly fixed costs for franchisees at $7,800. 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. The breakeven sales in dollars is = Breakeven sales in dollars Requirement 2. Is franchising a good idea for Zhu if franchisees want a minimum monthly operating income of $7,150 and Zhu believes that most locations could generate $21,500 in monthly sales? The target sales in dollars to reach the minimum monthly operating income for franchises is Yuning Zhu's franchising concept idea. She expects most locations the sales required to earn the target profit.
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