Fixed vs Variable cost preference. Bates operates a kiosk at a local mall, selling duck calls for $30 each. The variable cost to make a duck call is $18. A new mall is opening where Bates wants to locate a new kiosk. The mall operator offers the following two options for Bates: 1. paying a fixed rent of $15,000 a month, or: 2. paying a fixed rent of $9,000 per month plus 10% of revenue earned from each duck call. The amount of monthly sales (in units) at which Bates would be indifferent as to which plan to select is:
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