Question

tomasz, a prospective franchise owner, is looking to keep his monthly costs as low as possible. the franchisor he is checking out is advertising that royalty payments of 8% of sales could be as high as $300,000 per month. the franchisor is claiming that a franchisee can expect monthly sales to be as high as

select one:

o a. $300,000.

o b. $3,000,000.

o c $3,750,000.

o d. $3,125,000.

Explanation:

Step1: Set up the percentage - sales relationship

Let $x$ be the monthly sales. We know that the royalty payment is 8% of sales, and the maximum royalty payment is $300000$. So the equation is $0.08x = 300000$.

Step2: Solve for $x$

To find $x$, we divide both sides of the equation by 0.08. So $x=\frac{300000}{0.08}=3750000$.

Answer:

C. $3,750,000$