Owner Jackie Long is considering franchising her Oriental Express restaurant concept. She believes people will pay $4.50 for a large bowl of noodles. Variable costs are $1.80 a bowl. Long estimates monthly fixed costs for franchisees at $9,000.

Requirements

1. Find a franchisee's breakeven sales in dollars.

2. Is franchising a good idea for Long if franchisees want a minimum monthly operating income of $7,350 and Long believes most locations could generate $23,000 in monthly sales?