Graduated Breakpoint: Example

This example is only for the reconciling frequency period so the breakpoints are based on the frequency.

For leases that require the sales calculation to accumulate over the year, see Cumulative Graduated Leasing: Example.

In this example, the payments are tiered as follows:

• Tenant pays 1% of gross sales in excess of 2,700,000.00 but less than 3,500,000.00 PLUS
• Tenant pays 3.5% of gross sales in excess of 3,500,000.00 but less than 4,500,000.00 PLUS
• Tenant pays 4% of gross sales in excess of 4,500,000.00

Graduated Leasing Table

Sales	5,000,000
Less Breakpoint	4,500,000
	500,000
Percent Factor	4%
		20,000.00
	4,500,000
	3,500,000
	1,000,000
Percent Factor	3.5%
		35,000.00
	3,500,000
	2,700,000
	800,000
	1%
		8,000.00
TOTAL AMOUNT DUE		63,000.00

Example 2

Sales	3,919,094
Less Breakpoint	3,500,000
	419,094
Percent Factor	3.5%
		14,668.29
	3,500,000
	2,700,000
	800,000
Percent Factor	1%
		8,000.00
TOTAL AMOUNT DUE		22,668.29