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The Owner of an Ice Cream Franchise Must Pay the Parent

Question 38

Multiple Choice

The owner of an ice cream franchise must pay the parent company $1,100 per month plus 3% 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 52% of the revenue. Determine the monthly revenue needed to break even.


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

Correct Answer:

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