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

Question

Quizplus · Accepted Answer

The Answer of 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

The Owner of an Ice Cream Franchise Must Pay the Parent