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30 April, 07:56

A prospective franchise owner wants to keep his monthly costs at a minimum. The franchisor he is reviewing is advertising that royalty payments of 8% of sales could be as high as $250,000 per month. The franchisor is claiming that a franchisee can expect monthly sales to be as high as: A. $ 2,125,000 B. $ 2,000,000 C. $ 3,125,000 D. $ 200,000

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  1. 30 April, 08:15
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    C. $ 3,125,000

    Explanation:

    The correct answer is C. $ 3,125,000

    sale = 250,000*100/8

    = $3,125,000
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