The owner of Cheesecake Factory at the Forum Shop is renegotiating the operation's lease and has the

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The owner of Cheesecake Factory at the Forum Shop is renegotiating the operation's lease and has the option of either (1) an annual fixed lease of $55,000 or (2) an annual fixed lease of $10,000 plus a variable lease set at 5% of annual revenue.

What is the indifference point?

Which option will cost less for the owner if annual revenue is expected to be $5,000,000?

Posted Date: Jun 22, 2024 12:03 AM

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The owner of Cheesecake Factory at the Forum Shop is renegotiating the operation's lease and has the

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