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Read the requirements. Requirement 1. Use the contribution margin ratio approach to find a...

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Question

Accounting

Read the requirements.
Requirement 1. Use the contribution margin ratio approach to find a franchise's breakeven sales in dollars.
(+)= Required sales in dollars
(?bar(+))1,%=
Is franchising a good idea for Song if franchisees want a minimum monthly operating income of $16,500? Explain your answer.
Since the predicted monthly sales of $69,250 are
the amount of sales necessary to generate a minimum monthly operating income of $16,500, Song's franchising concept
a good idea
Requirements
Use the contribution margin ratio approach to find a franchise's breakeven
sales in dollars.
Song believes most locations could generate $69,250 in monthly sales. Is
franchising a good idea for Song if franchisees want a minimum monthly
operating income of $16,500? Explain your answer.
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