Chapter 21, Problem E21.34E

To determine

Break-even point:

The Break-even point is that level of activity at which the total sales revenue of the business is equal to total cost of the business. This means the firm is at no profit or no loss situation. This is the level below which the sales level of the firm shall not fall, it will lead to losses for the firm. The break-even point in computed in terms of units and in terms of dollars sales.

Requirement1:

The Computation of break-even point in terms of dollarsales for the business.

To determine

Requirement2:

The decision on franchisee business to be taken.