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

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