Bart Masterson is considering leasing a 1,100 square foot restaurant location housed in a strip shopping mall. Bart has plans to open, in a space of about that size, an operation featuring Caribbeanstyle foods. The owner of the space wants a rent of $5.28 per square foot per month for the location.

Bart feels he can make a good profit in this proposed location if his space rental cost is 7% or less of his gross sales. Help Bart complete the worksheet he has begun to determine the annual sales volume his operation must generate to achieve a 7% space rental cost in this proposed location.

Bart's Proposed Rental Space Space Cost Per Square Foot $ 5.28 Monthly Annual # of square feet 1,100 $ % $ % Total revenue 100% 100% Space rental cost 7.0%