Question

Owner Li Soo is considering franchising her Happy Noodles restaurant concept. She ­believes people will pay $ 5.25 for a large bowl of noodles. Variable costs are $ 2.10 a bowl. Soo estimates monthly fixed costs for franchisees at $ 7,500.

Requirements
1. Find a franchisee’s breakeven sales in dollars.
2. Is franchising a good idea for Soo if franchisees want a minimum monthly operating income of $ 7,050 and Soo believes that most locations could generate $ 25,000 in monthly sales?



$1.99
Sales3
Views138
Comments0
  • CreatedAugust 27, 2014
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