Question: Ben Dover is trying to decide how to set up his lease for his new restaurant. He has two options: Option 1: Fixed lease of

Ben Dover is trying to decide how to set up his lease for his new restaurant. He has two options: Option 1: Fixed lease of $24,000 per year Option 2: Variable lease of 6% of total sales 1. What is the indifference point of the two options? 2. If he expects to have $390,000 in sales which option should he pick? 3. If he expects to have $420,000 in sales which option should he pick

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