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A company wants to open a new store in one of three nearby shopping malls. In Mall A, the rent will be $300,000 per year.

A company wants to open a new store in one of three nearby shopping malls. In Mall A, the rent will be $300,000 per year. In Mall B, the rent will be 4% of gross revenues. In Mall C, the rent will be $150,000 per year plus 3% of gross revenues. Assume that revenues and all other elements under consideration are the same for all three malls.

Which mall should the company choose if revenues are expected to be $6,000,000 per year?

Mall A.
Mall B.
Mall C.
The company will be indifferent between two of the choices.

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