Question

A manager pays $5,000 per month plus 2% of total monthly sales to the owner of the buiilding that houses the manager's restaurant. How much will the manager have to pay to her landlord in a month in which her operation's total sales were $80,000?a) $1,600b) $5,000c) $6,600d) $3,400e) $10,000

Answer 1

Option a) $6,600

Option b) $5,032

Option c) $5,100

Option d) $5,132

Option e) $5,068

Option f) $5,200

Step-by-step explanation:

Monthly payment amount is computed as Fixed payment amount of $5,000 plus additional 2% of the monthly sales amount.

Calculations for all options are presented below:

Option a)

Fixed Payment Amount $5,000

Add: 2% of monthly sales (80,000 x 2%) $1,600

Total Payment $6,600

Option b)

Fixed Payment Amount $5,000

Add: 2% of monthly sales (1,600 x 2%) $32

Total Payment $5,032

Option c)

Fixed Payment Amount $5,000

Add: 2% of monthly sales (5,000 x 2%) $100

Total Payment $5,100

Option d)

Fixed Payment Amount $5,000

Add: 2% of monthly sales (6,600 x 2%) $132

Total Payment $5,132

Option e)

Fixed Payment Amount $5,000

Add: 2% of monthly sales (3,400 x 2%) $68

Total Payment $5,068

Option f)

Fixed Payment Amount $5,000

Add: 2% of monthly sales (10,000 x 2%) $200

Total Payment $5,200