When the rosco international chain of restaurants enters foreign markets, locals own the restaurant facilities, but look to rosco to provide expertise in management and marketing. rosco uses the approach to enter international markets?

The Rosco International chain of restaurants uses the management contracting approach to enter international markets. Management contracting is a procurement route in which the works are constructed by a number of different works servicers who are contracted to a management contractor.

the revised net operating income is   $ 26,400

Explanation:

Effect the Changes on the Units, Selling Price and Fixed Cost as described on the Original Income Statement.

                          Revised Income Statement

Sales( (12,900 units x 2)× ($20 per unit×0.90))      $ 464,400

Variable expenses ( $10× (12,900 units x 2))         ($ 258,000)

Contribution margin                                                  $206,400

Fixed expenses (144,000  + $36,000 )                    ($180,000)

Net operating loss                                                     $ 26,400