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What conditions should the director pick fixed lease terms

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Reference no: EM132619797

Problem 1: The director of operations of Double J department store has two lease cost options to choose for the property. Option #1 is the annual fixed lease terms as $60,000. Option #2 is the variable lease term, which is set at 8.00% of the total revenue of the store. Under what conditions should the director pick fixed lease terms and variable lease terms by running an indifference point analysis based on these two leasing options?

Reference no: EM132619797

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