A lease for a store calls for a base monthly rent of $1,500 up to $10,000 of sales with a possible additional monthly cost of 2% of sales over $10,000. The rent is a fixed cost for the month for a relevant range of zero to $10,000 sales.

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The lease calls for a base monthly rent of $1,500 up to $10,000 of sales, indicating that the rent is a fixed cost for the relevant range of zero to $10,000 sales. Additionally, any additional monthly cost is only applicable for sales over $10,000, indicating that it is a variable cost rather than a fixed cost.

A Lease for a Store Calls for a Base Monthly