Question

Owner Kay Fay is considering franchising her Noodles Galore restaurant concept. She ­believes people will pay $ 6.25 for a large bowl of noodles. Variable costs are $ 2.50 a bowl. Fay estimates monthly fixed costs for franchisees at $ 8,250.

Requirements
1. Find a franchisee’s breakeven sales in dollars.
2. Is franchising a good idea for Fay if franchisees want a minimum monthly operating income of $ 6,600 and Fay believes most locations could generate $ 24,000 in monthly sales?



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  • CreatedAugust 27, 2014
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