Question

A business owner agrees to pay an annual mall rent of $30 per square foot for a 1,000-square-foot space. The store anticipates annual gross sales of $300 per square foot. If there is also an add-on charge of 3% of gross sales, what amount will the store have to pay monthly in rent and fees?

Answer 1

Answer:

  $3250

Step-by-step explanation:

Annual rental costs per square foot are ...

  $30 + 0.03·$300 = $39

Then for 1000 square feet, the annual rental cost will be ...

  (1000 ft²)($39/yr/ft²) = $39000/yr

The monthly cost is 1/12 of this:

  ($39000/yr)/(12 mo/yr) = $39000/12 /mo = $3250/mo