Business, 09.04.2020 18:17 babsst7480

Owner Shan Lois considering franchising her Noodles for a restaurant concept. She believes people will pay

$ 10.50 for a large bowl of noodles. Variable costs are $ 6.30 per bowl. Lo estimates monthly fixed costs for a franchise at $10,500.

Requirements

1.Use the contribution margin ratio approach to find afranchise's breakeven sales in dollars.

2.Lo believes most locations could generate $63,000

in monthly sales. Is franchising a good idea for
Lo if franchisees want a minimum monthly operating income of

13,500?

Answers: 2

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Owner Shan Lois considering franchising her Noodles for a restaurant concept. She believes people wi...

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