phillipmccormick
10.03.2020 •
Business
Owner Shan Mu is considering franchising her Noodles by Mu restaurant concept. She believes people will pay $ 10.00 for a large bowl of noodles. Variable costs are $ 5.00 per bowl. Mu estimates monthly fixed costs for a franchise at $ 9 comma 000.1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars.Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars using the contribution margin approach.2. Lo believes most locations could generate $96,500 in monthly sales.Is franchising a good idea for Lo if franchisees want a minimum monthly operating income of $25,500?
Solved
Show answers
More tips
- H Health and Medicine Simple Ways to Lower Cholesterol in the Blood: Tips and Tricks...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
- S Style and Beauty Intimate Haircut: The Reasons, Popularity, and Risks...
- A Art and Culture When Will Eurovision 2011 Take Place?...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
- F Family and Home Why Having Pets at Home is Good for Your Health...
- H Health and Medicine How to perform artificial respiration?...
- H Health and Medicine 10 Tips for Avoiding Vitamin Deficiency...
- F Food and Cooking How to Properly Cook Buckwheat?...
Answers on questions: Business
- B Business What happened to Pure Digital Technologies in March 2009?...
- B Business What is one way to set up an opportunity for job shadowing?Contact people you know and request a shadowing experience.Show up on the day you would like to shadow and request to...
- B Business Discuss the importance of inventory management to a firm...
- B Business The sales volume variance is the difference between the? a. actual results and the expected results in the flexible budget for the actual units sold b. flexible budget and static...
- S Social Studies Bert constantly questions his girlfriend about her whereabouts. he gets extremely anxious and overbearing when he is unable to track her. bert s therapist tells him that he understands...
- S Social Studies If you call someone a good friend, you behave in a certain way towards that person. but if you call that person a girlfriend or boyfriend, you allow yourself to practice other...
- P Physics The skateboarder in the drawing starts down the left side of the ramp with an initial speed of 5.4 m/s. neglect nonconservative forces...
- P Physics The rate (in liters per minute) at which water drains from a tank is recorded at half-minute intervals. use the average of the left- and right-endpoint approximations to estimate...
- P Physics Aplate of glass 9.00 cm long is placed in contact with a second plate and is held at a small angle with it by a metal strip 0.0800 mm thick placed under one end. the space between...
- P Physics Two long wires are oriented so that they are perpendicular to each other, and at their closest they are 20.0 cm apart. what is the magnitude of the magnetic field at a point midway...
Ответ:
Instructions are listed below.
Explanation:
Giving the following information:
She believes people will pay $ 10.00 for a large bowl of noodles. Variable costs are $ 5.00 per bowl. Mu estimates monthly fixed costs for a franchise at $9,000
First, we need to calculate the break-even point in dollars:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 9,000/ [(10 - 5)/10]= $18,000
To determine whether it is convenient to the franchisees, we need to calculate the margin of safety in dollars and, compare it to a break-even point in dollars with the desired income:
Break-even point (dollars)= (fixed costs + desired income)/ contribution margin ratio
Break-even point (dollars)= (9,000 + 25,500) / 0.5= $69,000
Margin of safety=(current sales level - break-even point)
Margin of safety= 96,500 - 69,000= $27,500
It is a good business opportunity for franchisees.
Ответ:
1.kilometres you would put on
2. Vehicle make/ model
3. Amount of time you’ve been driving
Explanation:
1.The more kilometres the more you pay because you’re more likely to get in an accident.
2. Vehicle make and model matters because newer and sportier vehicles are more expensive because they usually cost more
3. The newer you are as a driver the more expensive it will be because you have no experience and are more likely to get in an accident