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urgent Owner Fay Woo is considering franchising her Happy Noodles restaurant concept. She believes people will pay $4.75 for a large bowl of noodles. Variable
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Owner Fay Woo is considering franchising her Happy Noodles restaurant concept. She believes people will pay $4.75 for a large bowl of noodles. Variable costs are $1.90 a bowl. Woo estimates monthly fixed costs for franchisees at $8,850. Read the requirements. Requirement 1. Find a franchisee's breakeven sales in dollars. Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. Requirements 1. Find a franchisee's breakeven sales in dollars. 2. Is franchising a good idea for Woo if franchisees want a minimum monthly operating income of $6,000 and Woo believes that most locations could generate $23,000 in monthly sales Step by Step Solution
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