Owner Gabriella Biffle is considering franchising her Oodles of Noodles restaurant concept. She believes people will pay $7.00 for a large bowl of noodles. Variable costs are $2.45 a bowl. Biffle estimates monthly fixed costs for franchisees at $7,800.

Requirements
1. Find a franchisee’s breakeven sales in dollars.
2. Is franchising a good idea for Biffle if franchisees want a minimum monthly operating income of $7,150 and Biffle believes most locations could generate $21,500 in monthly sales?