The director of operations of Kenton Event Company has two l…
The director of operations of Kenton Event Company has two lease cost options to choose for its properties. Option #1 is the annual fixed lease terms as $70,000. Option #2 is the variable lease term which is set at 10.00% of the total revenue of the store. Under what conditions should the director of Kenton pick fixed lease terms and variable lease terms by running an indifference point analysis based on the these two leasing options? Provide your opinions.
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