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Karen Hefner, a florist, operates retail storesin several shopping malls. The average selling price of an arrangement is $30, and the average cost of each
Karen Hefner, a florist, operates retail storesin several shopping malls. The average selling price of an arrangement is $30, and the average cost of each sale is $18. A new mall is opening where Karen wants to locate a store, but the location manager is unsure about accepting the renting method. The mall operator offers the following three options for its retail store rentals paying a fixed rent of $15,000 a .1 month, or paying a base rent of $9,000 plus 2 10% of the revenue received, or paying a base rent of $4,800 plus 3 20% of the revenue received up to a maximum .rent of $25,000 14 Compute the monthly rent paid at * break-evens 15 Which option is preferable at sales .level of 1,700 units
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