Question

A fine jewelry store leased a space at the mall with a base rent of $1,800 a month, plus 4% of all sales over $200,000. If the gross sales were $325,000, what was the total amount of rent paid by Heinz Fine Jewelry at the end of the year?

Answer 1

So, first, we have to establish how much the base rent ends up costing. So to find that, we do 1,800x12=21,600. So the base rent is $21,600. Then, we add the 4% of sales which is 125,000x0.04=5,000. So, we add $21,600 with $5,000 and we get a final answer of $26,600 owed at the end of the year :)

Explanation: