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Assume a retail tenant is paying a base rent of $120,000 per year (or $10,000 per month). In addition, the tenant must pay 7 percent of gross store sales in excess of $143,000 per month as percentage rent. If the store produces $170,000 in gross sales in a month, what is the total rent due for the month

Sagot :

Tundexi

The total rent due for the month is $11,890.

Given Information

Payment of retail tenant = 20,000

Tenant must pay 7% of gross store sales

  • The formula to use to calculate the amount of rent due for the month is {Monthly rent + 7% of sale in excess of $143,000}

Total rent due = $10,000 + 7% * ($170,000 - $143,000)

Total rent due = $10,000 + 7%*$27,000

Total rent due = $10,000 + $1,890

Total rent due = $11,890

Therefore, the total rent due for the month is $11,890.

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