The Owner of an Ice Cream Franchise Must Pay the Parent

question 30

Multiple Choice

The owner of an ice cream franchise must pay the parent company $1,200 per month plus 7% of the monthly revenue R. Operating cost of the franchise includes a fixed cost of $2,300 per month for items such as utilities and labor. The cost of ice cream and supplies is 53% of the revenue. Determine the monthly revenue needed to break even.

• A)$5,833
• B)$8,750
• C)$3,500
• D)$1,400
• E)$1,100

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Definitions:

Neutral Fiber

In beam bending, it's the fiber at the midpoint of the cross section which experiences no compressive or tensile stress when the beam is flexed.

C-Channel Frame

The structure of a frame, often used in vehicle construction or building, characterized by its cross-sectional shape resembling the letter "C", providing strength and flexibility.

Flanges

Flat rims, edges, ribs, or collars, often used to strengthen an object, attach it to another object, or for handling.

Section Modulus (SM)

A geometric property for a given cross-section used in the design of beams or flexural members.