Answer:
$37,500
Explanation:
You receive 2% of the sales.
You have to earn $750 to break even, or cover the franchise cost.
So, if we let Sales be "x", we can say:
2% of x would be 750
What is 2% in decimal?? We divide by 100, so we have:
2% = 2/100 = 0.02
Now, we convert the word equation above to mathematical equation:
0.02 * x = 750
Now, we solve for x, the amount customers have to buy (or sales):
[tex]0.02*x=750\\x=\frac{750}{0.02}\\x=37,500[/tex]
Hence,
Customers would have to buy $37,500 to cover the cost of this fee.
