Urgent

More info Lo believed people would pay $5.00 for a large bowl of noodles. Variable costs would be $2.00 a bowl creating a contribution margin of $3.00 per bowl. Shan Lo estimated monthly fixed costs for franchisees at $8,400. Franchisees wanted a minimum monthly operating income of $6,000. d level, will the frat formula labels and compute the operating income after the changes. hising her Oriental Express restaurant concept, owner Shan Lo had made the following assumptions. ie icon to view the assumptions.) (i) (Click the icon to view more information.) More info Lo did franchise her restaurant concept. Because of Oriental Express' success, Noodles Galore has come on the scene as a competitor. To maintain its market share, Oriental Express will have to lower its sales price to $4.50 per bowl. At the same time, Oriental Express 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 $600 per month to cover the advertising costs. Prior to these changes, most locations were selling 7,000 bowls per month. d level, will the franchisees Tlick the icon to view the assumptions.) (1) (Click the icon to view more information.) 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 $6,000 per month? Show your calculations. d level, will the Requirement 1. What was the average restaurants operating incomin before these changes? Identify the formula labels and compute the operating income before the changes. Requirement 2. Assuming that the price cut and advertising campaign are successful at inerdasing volume to the projected level, will the franchisens stil earn their target prolit of \$6. of por month? Show your calculations. Identify the formula labels and compute the operating income after the changes. Times: Contribution margin Lass: Operating income Cutting the sales price and advertising allow the franchise owners to eam their target profits of $6,000 per month