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Before franchising her Noodle Time restaurant concept, owner Yang Wong had made the following assumptions. A Click the icon to view the assumptions.) (Click the icon to view more information.) Read the requirements. x More Info Requirement 1. What was the average restaurant's operating income before these changes? Identify the formula labels and compute the operating income before the changes. Wong believed people would pay $6.50 for a large bowl of noodles. Variable costs would be $1.95 a bowl creating a contribution margin of $4.55 per bowl. Yang Wong estimated monthly fixed costs for franchisees at $8,400. Franchisees wanted a minimum monthly operating income of $7,000. Contribution margin Print Done Less: Operating income x More Info Requirements 1. What was the average restaurant's operating income before these changes? 2. Assuming that the price cut and advertising campaign are successful at increasing volume to the projected level, will the franchisees still earn their target profit of $7,000 per month? Show your calculations. Wong did franchise her restaurant concept. Because of Noodle Time' success, Noodles 'n More has come on the scene as a competitor. To maintain its market share, Noodle Time will have to lower its sales price to $6.00 per bowl. At the same time, Noodle Time hopes to increase each restaurant's volume to 6,000 bowls per month by embarking on a marketing campaign. Each franchise will have to contribute $500 per month to cover the advertising costs. Prior to these changes, most locations were selling 5,500 bowls per month. Print Done Print Done Chooco from anu lietor anter Anumber in the input field and then click Check Anwar