Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer the min and the requirements Owner Yuning Zhu is considering franchising her Oodles of Noodles restaurant concept. She believes people will pay $7.00

image text in transcribed

please answer the min and the requirements

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. )Contributionmarginratio=Breakevensalesindollars The breakeven sales in dollars is 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 Requirements 1. Find a franchisee's breakeven sales in dollars. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions