Nevada Flower Creations operates retail stores in shopping malls. The average selling price of an arrangement is $25. The average cost of each sale is $15. A new mall is opening where Nevada Flower Creations wants to locate a store, but the location manager is not sure about the rent method to accept. The mall operators offer three options for its retail store rentals as follows: 

1. Paying a fixed rent of $12,500 a month, 

2. Paying a base rent of $10,000 plus 8% of revenue received, or 

3. Paying a base rent of $5,000 plus 20% of revenue received up to a maximum rent of $20,000. Required: 

a. Compute the break-even sales of each option and the monthly rent paid at break-even. 

b. At what sales level is the manager indifferent between Options 2 and 3? 

c. Beginning at zero sales, show the sales levels at which each option is preferable up to 5.000 units.