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Oliga [24]
3 years ago
6

A lease provides that the tenant pays $760 minimum rent per month plus 4% of the gross sales in excess of $150,000 per year. If

the tenant paid a total rent of $20,520 last year, what was the gross sales volume?
Mathematics
1 answer:
Fittoniya [83]3 years ago
4 0

Answer:

$435,000

Step-by-step explanation:

$760 per month * 12 months = $9,120

The minimum rent requires an annual rental cost of $9,120.

The annual rent was $20,520.

The excess was $20,520 - $9,120 = $11,400.

The amount of $11,400 of the rent was due to the gross sales in excess of $150,000.

$11,400 is 4% of the amount in excess of $150,000.

Let the amount in excess of $150,000 = x.

$11,400 = 4% of x

0.04x = 11,400

x = 285,000

$285,000 is the amount in excess of $150,000.

Total gross sales volume = $285,000 + $150,000 = $435,000

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