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Before franchising her Noodle Time restaurant concept, owner Yang Wong had made the following assumptions. (Click the icon to view the assumptions.) i (Click the icon to view more information.) A More Info Read the requirements. 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 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. Contribution margin Less: Print Done Operating income i More Info 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. Print [ Done] Choose from any list or enter any number in the input fields and then click Check Answer. parts 2 remaining Clear All Check