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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: 1. paying a fixed rent of $15,000 a month, or 2. paying a base rent of $9,000 plus 10% of the revenue received, or 3. paying a base rent of $4,800 plus 20% of the revenue received up to a maximum rent of $25,000. 14 Compute the monthly rent paid at break-evens * (3 Points) Enter your answer 15 Which option is preferable at sales level of 1,700 units. * Points) Enter your
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