A retail tenant pays base rent of $1,800 per month plus 4% of gross monthly sales over a breakpoint of $40,000. If the tenant's gross sales for the month are $50,000, what total rent is due for that month?
Correct Answer
B) $2,200
Sales over the breakpoint = $50,000 − $40,000 = $10,000. Percentage rent = $10,000 × 4% = $400. Total rent = $1,800 + $400 = $2,200.
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