QUESTION $1(12$ marks$)$

Sandra Kaur, a flower basket retailer, has stores in four shopping centres. The average selling price of a decorated flower basket is $$60,$ and the average cost of each sale is $$36.$ A new shopping centre is opening where Sandra wants to open a store, but she is not sure which rental option she should choose. The landlord has offered three options for the new store:

paying a fixed rent of $$20,000$ a month, or

paying a base rent of $$14,500$ a month plus $8\%.$ of monthly revenue received, or

paying a base rent of $$7,200$ plus $14\%$ of revenue received up to a maximum rent of $$30,000.$

Required:

For each option, compute the breakeven sales and the monthly rent paid at break$-$even.