Olivia Nguyen, a gift basket retailer, has stores in three shopping centres. The average selling price of a decorated gift basket is $60, and the average cost of each sale is $36. A new shopping centre is opening where Olivia wants to open a store, but she is not sure which rental option she should choose.The landlord has offered three options for the new store:

1. paying a fixed rent of $20,000 a month, or

2. paying a base rent of $14,500 a month plus 8% of monthly revenue received, or

3. paying a base rent of $7,200 plus 14% of revenue received up to a maximum rent of $30,000.

Required:

For each option, compute the breakeven sales and the monthly rent paid at break-even