The Owner of an Ice Cream Franchise Must Pay the Parent

question 81

Multiple Choice

The owner of an ice cream franchise must pay the parent company $1,100 per month plus 5% of the monthly revenue R. Operating cost of the franchise includes a fixed cost of $2,500 per month for items such as utilities and labor. The cost of ice cream and supplies is 50% of the revenue. Determine the monthly revenue needed to break even.

• A)$3,600
• B)$1,620
• C)$1,400
• D)$8,000
• E)$6,545

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