Owner Shirl Low is considering franchising her Noodles by Low restaurant concept. She believes people will pay $8.00 for a large bowl of noodles. Variable costs are $4.80 per bowl. Low estimates monthly fixed costs for a franchise at $12,000.   Read the requirements LOADING... .   Requirement 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. ​(Enter a​ "0" for any zero balances. Abbreviation​ used: CM​ = contribution​ margin.)   (   +   ) ÷   = Required sales in dollars Requirements 1. Use the contribution margin ratio approach to find a​ franchise's breakeven sales in dollars. 2. Low believes most locations could generate $91,250 in monthly sales. Is franchising a good idea for Low if franchisees want a minimum monthly operating income of $19,500​? Explain your answer.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.