Annual revenues to franchisor annually for advertising

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Reference no: EM131280518

The variable cost of a burger meal is 50 cents, the revenue of a burger meal is $1.00. Your fixed costs are $200,000 a year. You also need to give 5% of your annual revenues to the franchisor annually for national advertising. You need to make 22% annual return on your $1,000,000 investment. How many burger meals do you have to sell to make the 22% return?

Reference no: EM131280518

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