Joan believes most locations could generate $ 37,000 in monthly sales. Is franchising a good idea for Joan if franchisees want a minimum monthly operation income (target profit) of $14,500? Formula to use : Calculations: =S2 required Sales Yes, it is a good idea since required sales to hit the target of $14,500 is less than the expected month sales of $37,000

Joan believes most locations could generate $ 37,000 in monthly sales. Is franchising a good idea for Joan if franchisees want a minimum monthly operation income (target profit) of $14,500? Formula to use : Calculations: =S2 required Sales Yes, it is a good idea since required sales to hit the target of $14,500 is less than the expected month sales of $37,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 6P

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Joan believes most locations could generate $ 37,000 in monthly sales. Is franchising a good idea for Joan if franchisees want a minimum monthly operation income (target profit) of $14,500? Formula to use : Calculations: =S2 required Sales Yes, it is a good idea since required sales to hit the target of $14,500 is less than the expected month sales of $37,000
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