Profit / Loss

Everlasting Bouquets (EB) makes and sells flower bouquets. EB is considering opening a new store in the local mall. The mall has several empty shops and EB is unsure of the demand for its product. The mall has offered EB two alternative rental agreements. The first is a standard fixed-rent agreement where EB will pay the mall $5,400 per month. The second is a royalty agreement where the mall receives $15 for each bouquet sold. EB estimates that a bouquet will sell for $54 and have a variable cost of $36 to make (including the cost of flowers and commission for the salesperson). Requirements Requirement 4 Using information from the original problem, prepare a table that shows the expected profit at each sales level under each rental agreement. The sales levels are 240, 440, 640, 840, or 1,040 arrangements. Begin with the fixed rent agreement. (Use parentheses or a minus sign for losses.)