Galaxy Caterers provides dinners for events at a price of $87.50 per contract. The average variable cost for a contract is $62.50. Galaxy catered 112 contracts last month, and expect that this will be the average for each month in the future. The company is wishing to expand, but the kitchen and the food preparation space is limited. The owner has located several possible new locations to rent and needs to determine how much extra space she can afford and still stay profitable.

What is the most Galaxy Caterers can spend on rent and other fixed costs to break even?