Owner Yuning Zhu is considering franchising her Oodles of Noodles restaurant concept. She believes people will pay

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Owner Yuning Zhu 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. Zhu 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 Zhu if franchisees want a minimum monthly operating income of $7,150 and Zhu believes most locations could generate $21,500 in monthly sales?
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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0134128528

5th edition

Authors: Karen W. Braun, Wendy M. Tietz

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