Read the requirements.

Requirement $1.$ Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars.

$(+)=$ Required sales $in$ dollars

$(\frac{?}{\text{b}\text{a}\text{r}}(+))1,\%=$

Is franchising a good idea for Song if franchisees want a minimum monthly operating income of $$16,500?$ Explain your answer.

Since the predicted monthly sales of $$69,250$ are

the amount of sales necessary to generate a minimum monthly operating income of $$16,500,$ Song's franchising concept

a good idea

Requirements

Use the contribution margin ratio approach to find a franchise's breakeven

sales in dollars.

Song believes most locations could generate $$69,250$ in monthly sales. Is

franchising a good idea for Song if franchisees want a minimum monthly

operating income of $$16,500?$ Explain your answer.