subject
Business, 30.08.2021 17:00 dexterwilliams161

Adamo, a florist, operates retail stores in several shopping malls. The average selling price of an arrangement is $30 and the average cost of each sale is $18. A new mall is opening where Adamo wants to locate a store, but the location manager is not sure about the rent method to accept. The mall operator offers the following two options for its retail store rentals: 1. paying a fixed rent of $15,000 a month.
2. paying a base rent of $9,000 plus 10% of revenue received
3. paying a base rent of $4,800 plus 20% of revenue received up to a maximum rent of $25,000.

Required:
a. For each option (1, 2, and 3), compute the breakeven sales for that option and the monthly rent paid at break-even.
b. Show the sales levels at which each option is preferable.

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 20:00
The maximum tax rate on estates and gifts
Answers: 1
question
Business, 22.06.2019 03:10
Transactions that affect earnings do not necessarily affect cash. identify the effect, if any, that each of the following transactions would have upon cash and net income. the first transaction has been completed as an example. (if an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15, cash net income (a) purchased $120 of supplies for cash. –$120 $0 (b) recorded an adjustment to record use of $35 of the above supplies. (c) made sales of $1,370, all on account. (d) received $700 from customers in payment of their accounts. (e) purchased equipment for cash, $2,450. (f) recorded depreciation of building for period used, $740. click if you would like to show work for this question: open show work
Answers: 3
question
Business, 22.06.2019 08:30
In risk management, what does risk control include? a. risk identification b. risk analysis c. risk prioritization d. risk management planning e. risk elimination need this answer now : (
Answers: 3
question
Business, 22.06.2019 12:30
Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented
Answers: 1
You know the right answer?
Adamo, a florist, operates retail stores in several shopping malls. The average selling price of an...
Questions
question
Computers and Technology, 12.02.2021 14:00
question
Mathematics, 12.02.2021 14:00
question
Mathematics, 12.02.2021 14:00
question
Biology, 12.02.2021 14:00