Question

A work-at-home opportunity is available in which you will receive 2 percent of the sales for customers you refer to the company. The cost of your ""franchise fee"" is $750. How much would your customers have to buy to cover the cost of this fee

Answer 1

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):

$0.02*x=750\\x=\frac{750}{0.02}\\x=37,500$

Hence,

Customers would have to buy $37,500 to cover the cost of this fee.