Percentage Lease Problems

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To calculate rent based on sales:

 

1.Calculate the minimum rent
2.Calculate the overage rent
3.Add the two together

 

Example:

 

Rent is $3,000 per month plus 10% of monthly sales over $50,000.  What is the rent if sales are $65,000?

 

Solution:

 

$65,000 - $50,000 = $15,000 - amount on which overage rent applies

$15,000 x 10% = $1,500 - percentage rent

$3,000 (minimum rent) + $1,500 (overage rent) = $4,500 (total rent)

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