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Ultra Foods is a national discount grocery store chain. In 2019, their 20,000 sgf Inglewood location generated $600/ sgf of sales. The sales in the
Ultra Foods is a national discount grocery store chain. In 2019, their 20,000 sgf Inglewood location generated $600/ sgf of sales. The sales in the same location is expected to increase by 10% within the next year (2020). Ultra Foods currently pays $20/sgg base rent and 4% percentage rent above "the natural breakpoint" for this location. Next year, the base rent will increase 50% to $30/ sgf. Which of the following statements is true regarding this store's lease payments? Options (a) The natural sales breakpoint in 2019 is $600/sgf. (b) The natural sales breakpoint in 2020 is $900/ sqf. (c) The total lease payment in 2019 is $28/sgf. (d) Total lease payment in 2020 is $37.5/sgf. (e) The expected growth in lease payments (from 2019 to 2020 ) is 25%. Ultra Foods is a national discount grocery store chain. In 2019, their 20,000 sgf Inglewood location generated $600/ sgf of sales. The sales in the same location is expected to increase by 10% within the next year (2020). Ultra Foods currently pays $20/sgg base rent and 4% percentage rent above "the natural breakpoint" for this location. Next year, the base rent will increase 50% to $30/ sgf. Which of the following statements is true regarding this store's lease payments? Options (a) The natural sales breakpoint in 2019 is $600/sgf. (b) The natural sales breakpoint in 2020 is $900/ sqf. (c) The total lease payment in 2019 is $28/sgf. (d) Total lease payment in 2020 is $37.5/sgf. (e) The expected growth in lease payments (from 2019 to 2020 ) is 25%
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