The Gator Restaurant currently has a variable lease that is 6 percent of its total revenue. An alternative approach is $120,000 per year. Assume its average and marginal tax rates are 35 percent and 40 percent, respectively. Required: 1. Determine its indifference point. 2. If its annual sales are expected to be $3,000,000, which type of lease do mend? Provide figures to support your recommendation. you recom- 3. Assume the Gator Restaurant's indifference point is $1,500,000. What is the net of tax cost of making an error in signing a variable lease when its annual sales are $1,700,000?