Suppose that the current total revenue of a particular lodging establishment is $900,000. At this revenue level, the management of the hotel is indifferent between selecting a fixed or variable lease option for the property. If the management foresees a constant increase in the revenue levels for the near future, what should be the managements best strategy for choosing the lease options?

None of the above.

Management should choose fixed lease option at any revenue point beyond current revenue of $900,000 if they expect a constant increase in revenue levels.

Management should keep being indifferent between the fixed and variable lease options if they expect a constant increase in revenue levels.

Management should pick variable lease option beyond current revenue of $900,000 if they expect a constant increase in revenue levels.