Illinois Real Estate Practice Exam 2025 – All-in-One Guide to Success in Your Real Estate Certification!

To determine the total sales for the Graham Office Supply Store, we first analyze the components of the rent payment structure. The store pays a fixed monthly rent of $1,500, which totals to $18,000 annually (calculated as $1,500 multiplied by 12 months).

Since the total annual rent is $25,000, we can find the excess rent due to the percentage on sales over $150,000. By subtracting the base rent from the total rent, we find that the additional amount paid due to the sales percentage is $25,000 minus $18,000, which equals $7,000.

Next, we know that the additional rent is charged at a rate of 3% on sales exceeding $150,000. Let’s denote total sales as \( S \). The sales over $150,000 can be expressed as \( S - 150,000 \). The 3% on these excess sales can be set up in an equation:

\[

0.03(S - 150,000) = 7,000

\]

To solve for \( S \), first isolate the term \( S - 150,000 \):

\[

S - 150,000 = \frac