Business, 20.09.2019 21:10 shawnaelvaughns

Owner fay woo is considering franchising her oriental joy restaurant concept. she believes people will pay $ 6.50 for a large bowl of noodles. variable costs are $ 1.95 a bowl. woo estimates monthly fixed costs for franchisees at $ 8 comma 400. 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. ( fixed expenses + operating income ) / contribution margin ratio = breakeven sales in dollars the breakeven sales in dollars is $ 12,000 . requirement 2. is franchising a good idea for woo if franchisees want a minimum monthly operating income of $ 7 comma 000 and woo believes that most locations could generate $ 26 comma 000 in monthly sales? the target sales in dollars to reach the minimum monthly operating income for franchises is $ .

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