- Before Franchising Her Global Chopsticks Restaurant Concept Owner Kay Fay Had Made The Following Assumptions Click Th 1 (39.19 KiB) Viewed 18 times
- Before Franchising Her Global Chopsticks Restaurant Concept Owner Kay Fay Had Made The Following Assumptions Click Th 2 (44.95 KiB) Viewed 18 times
- Before Franchising Her Global Chopsticks Restaurant Concept Owner Kay Fay Had Made The Following Assumptions Click Th 3 (44.51 KiB) Viewed 18 times
- Before Franchising Her Global Chopsticks Restaurant Concept Owner Kay Fay Had Made The Following Assumptions Click Th 4 (52.35 KiB) Viewed 18 times
Before franchising her Global Chopsticks restaurant concept, owner Kay Fay had made the following assumptions. i (Click the icon to view the assumptions.) (Click the icon to view more information.) Read the requirements. idenury une formula lapers and compute une operaung income Delore the changes. Times: Contribution margin Less: ACCORD Operating income Requirement 2. Assuming that the price cut and advertising campaign are successful at increasing volume to the projected level, will the franchisees still earn their target profit of $3,500 per month? Show your calculations. Identify the formula labels and compute the operating income after the changes. Times: Contribution margin Less: Operating income Cutting the sales price and advertising allow the franchise owners to earn their target profits of $3,500 per month.
s and ng thị 00 pe Is and More info BED Fay believed people would pay $5.50 for a large bowl of noodles. Variable costs would be $2.75 a bowl creating a contribution margin of $2.75 per bowl. Kay Fay estimated monthly fixed costs for franchisees at $8,750. Franchisees wanted a minimum monthly operating income of $3,500. Print Done - X the franchisee:
con to view the assumptions.) rements. mula labels and margin come 2. Assuming th ofit of $3,500 pe mula labels and margin More info (Click the icon to view more information.) Fay did franchise her restaurant concept. Because of Global Chopsticks' success, Tasty Noodles has come on the scene as a competitor. To maintain its market share, Global Chopsticks will have to lower its sales price to $5.00 per bowl. At the same time, Global Chopsticks hopes to increase each restaurant's volume to 5,500 bowls per month by embarking on a marketing campaign. Each franchise will have to contribute $600 per month to cover the advertising costs. Prior to these changes, most locations were selling 5,000 bowls per month. Print - X Done the franchisee