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Choice C is correct. There are four steps: (1) minimum rental for the year is 12 times the monthly amount: 12 months x $1,200 per month = $14,400, (2) rental above the minimum is found by subtracting the minimum rent from the total rent paid for the year: $19,200 - $14,400 = $4,800, (3) this overage is 4% of the amount of business that exceeded $150,000. The amount of business that exceeded $150,000 is found by dividing $4,800 by 4%: $4,800 / 4% = $120,000, and (4) total business is the sum of the basic $150,000 and the $120,000 overage: $150,000 + $120,000 = $270,000.