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Q1 Utility Cost Rooms Sold Highest Lowest Difference Month January February March April May June July August September October November December Total Utility Cost Rooms Sold $20,000 2000 22,000 2400 24,000 2800 26,000 3200 28,000 3600 30,000 4000 32,000 4400 34,000 4800 32,000 4400 30,000 4000 28,000 3600 26,000 3200 332000 42400 VC Per unit Total VC Monthly Fixed Cost Q2 Mira restaurant has an opportunity to pay a fixed rent for its premises of $30,000 a month or a variable rent of 10% of its sales revenue. Which option would you choose? Why? Fixed Rent Annual Variable Rent Annual Indifference Point