Question
classical classes operates a kiosk at the local mall, selling sunglasses for $30 each. classical glasses currently pay $1000 a month to rent the space
classical classes operates a kiosk at the local mall, selling sunglasses for $30 each. classical glasses currently pay $1000 a month to rent the space and pays two full time employees to each work 160 hours a month at $10 per hour. the store shares a manager with a neighbouring kiosk and pays 50% of the managers annual salary of $60000 and benefits of $12000 the wholesale cost of the sunglasses to the company is $10 a pair
required
1) assume classical glasses pays its employees hourly under the original pay structure , but is able to pay the mall 10% of its monthly revenue instead of monthly rent . at what sales levels would classical glasses prefer to pay a fixed amount of monthly rent, and at what sales levels would it prefer to pay 10% of its monthly revenue as rent?
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