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Owner Shir Low is considering ftanchising her Noodles by Low restaurant concepl. She believes people will pay $5.00 for a large bowl of noodies. Variabie costs are $2.00 per bow. Low estimates monthly fixed costs for a franchise at $12,000. Read the requirements. Requirement 1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollar. Begin by showing the formula and then entering the amounts to calculate the beeakeven point in sales dellars using the contribution margin approach. (Entor a "a. for any zare balancos. Abbreviation used. CM = coentribution margin. Required sales in dolan Explain your antwer. Bogin by showing the formula and than entering tf he targeted sales dollars required to earn the minimum monthly operating inceme of $15,000. Aobreviabion used CM = coninbution margin) less than Is In thehising a pood ides for Low if tranchaces w operating income of $15.000 ? Explain yeur answer: Since the predictied manitly sales of $56,500 are the anourh of salos nocesainy to generate a minimum monthly operabing ineome of $15.000, Lows tanchisag conceged Requirement 1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. Rec Fixed costs Exp 3 most locations could generate $56,500 in monthly sales. Is franchising a good idea for Low if franchisees Beg Variable costs I and then entering the amounts to calculate the targeted sales dollars required to earn the minimum month con Vation Is franchising a good idea for Low if franchisees want a minimum monthly operating income of $15,000 ? Explain your answer. Requirament 1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars. Bogin by showing the formula and then antering the amounts to calculate the broakoven point in sales dollars using the contribution margin approsch. (Entur a "O" lor any zeeo bailances. Aboreviation used: CM= conterbution margin.) Requirement 2. Low belioves most locations could generate $56,500 in monthly sales. Is franchieing a good idea for Low if tranchisees want a minimum mantily operating income of $15,0007 Explain your answer. Begin by showing the formula and then entering the amounts to catculate the targeted sales dellars required to eam the minimum monthily operating income of S:5,000. (ADbin contribution margin.] s franchising a good idea for Low it franchisees want a minimum monthly cperating income of $15.000 ? Explain your answer. Since the predicted monthly sales of $56,500 are the amount of sales necessary to generate a minimum monthly operating income of $15,000, Low's franchising concept

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