To find the total gross sales, let's break down the information provided. I.M. Seller Inc. paid a base rent of $1,500 based on $90,000 in gross sales. They also paid 4% of everything over $90,000.
We know that the total rent for October was $2,150. To find the additional amount paid based on the percentage, we subtract the base rent from the total rent: $2,150 - $1,500 = $650.
Now, we can calculate the additional gross sales that resulted in the $650 payment. Since the percentage paid is 4%, we divide the additional payment by 4%: $650 / 0.04 = $16,250.
To find the total gross sales, we add the additional gross sales to the base sales: $90,000 + $16,250 = $106,250.
Therefore, the total gross sales for I.M. Seller Inc. is $106,250. So the answer is (c) $106,250.
