#6

Please solve and explain requirement 2

Owner Lei Wong is considering franchising her Happy Wok restaurant concept. She believes people will pay $4.75 for a large bowl of noodles. Variable costs are $1.90 a bowl. Wong estimates monthly fixed costs for franchisees at $8,850. Read the requirements Requirements come using the contribution margin approach ratio Breakeven sales in dollars 1. Find a franchisee's breakeven sales in dollars 2. Is franchising a good idea for Wong if franchisees want a minimum monthly operating income of $6,000 and Wong believes that most locations could generate $25,000 in monthly sales? operating income of $6,000 and Wong believes that m Done Print Requirement 2. Is franchising a good idea for Wong if franchisees want a minimum monthly operating income of $6,000 and Wong believes that most locations could generate $25,000 in monthly sales? The target sales in dollars to reach the minimum monthly operating income for franchises is $