Answer:
Option a) $6,600
Option b) $5,032
Option c) $5,100
Option d) $5,132
Option e) $5,068
Option f) $5,200
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
