Requirement 2:

Assuming that price cut advertising campaign are successful at increasing volume to the projected level, will the franchisees still earn their target profit of 3500 per month?

show your calculations

re these changes? anges 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 $3,500 per month? Show your calculations e successf S3,500 per mo anges Print Done n continue to the next question. 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 Contribution margin Less: Operating income es More Info Lai believed people would pay $5.50 for a large bowl of noodles. Variable costs would be $2.75 a bowl creating a contribution margin of $2.75 per bowl. Mei Lai estimated monthly fixed costs for franchisees at $8,750. Franchisees wanted a ccessi minimum monthly operating income of $3,500. $3,500 per Print Done Identify the formula labels and compute the operating income after the changes Contribution margin Less Operating income Cutting the sales price and advertising | I allow the franchise owners to earn their target profits of $3.500 per month. Choose from any list or enter any number in the input fields and then continue to the next question. i More Info Lai did franchise her restaurant concept. Because of Happy Noodles' success More Noodles has come on the scene as a competitor. To maintain its market share, Happy Noodles will have to lower its sales price to $5.00 per bowl At the same time, Happy Noodles hopes to increase each restaurant's volume to 7,500 bowls per month by embarking on a marketing campaign. Each franchise will have to contribute $400 per month to cover the advertising costs. Prior to these changes, most locations were selling 7,000 bowls per month. PrintDone eir target profits of $3,500 per month. the next