The Owner of an Ice Cream Franchise Must Pay the Parent

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