Zoe fresh flowers is new business ready to open a store in the Westfield shopping...
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Zoe fresh flowers is new business ready to open a store in the Westfield shopping center nearby. Westfield has a number of florist shops already, so Zoe is anxious about the demand for her flowers arrangemens. Westfield has two options available for Rental contracts: A) a standard fixed rent agreement of $10,000 per month;or B) a commission contract based on 20% of sales revenue with$4000 per month minimum rent. Zoe estimates that a bouquet will sell for$120 and have a variable cost of 69$ to make and a 10% sales commission for the shop attendant. Required 1. What is the break even point in units under each rental agreement
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