Question

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

Answer 1

C. $ 3,125,000

Step-by-step explanation:

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

sale = 250,000*100/8

= $3,125,000