Portioned Sales Groups

Portioned sales groups are sales groups that belong under a Master Breakpoint. Each sales group has a break point that is determined by the total sales of the sales group divided by the total amount in sales. That breakpoint percentage is then multiplied against the Master Breakpoint to determine the dollar amount of the breakpoint for each sales group.

In Portioned Sales Groups, it is possible for sales to exceed a breakpoint for one portion and not exceed a breakpoint for another portion. In this scenario, the percentage scales for calculating percentage rent could be different for each portion.

In the example below, the Master Breakpoint is $200,000.00. The tenant has made $10,000,000.00 in total sales, with $6,000,000.00 in Retail Sales and $4,000,000.00 in Online Sales.

Example

Our Master Breakpoint is $200,000.00, and our sales data appears in the table below.

Sales Amounts by Category

Category	Amount
Retail Sales	$6,000,000.00
Online Sales	$4,000,000.00
Total Sales	$10,000,000.00

Calculate Retail Sales Portion and Breakpoint

Our formula for calculating the portion of total sales that are retail sales is as follows:

• Retail Sales Total / Total Sales = Retail Sales Portion

This means our calculation is the following:

• $6,000,000.00 / $10,000,000.00 = 60%

To calculate our breakpoint for retail sales, we will use the following formula:

• Master Breakpoint * Retail Sales Portion Percentage = Retail Sales Breakpoint

This means that our calculation is the following:

• $200,000.00 * .60 = $120,000.00

$120,000.00 is our breakpoint for Retail Sales.

Calculate Online Sales Portion and Breakpoint

Our formula for calculating the portion of total sales that are online sales is as follows:

• Online Sales Total / Total Sales = Online Sales Portion

This means our calculation is the following:

• $4,000,000.00 / $10,000,000.00 = 40%

To calculate our breakpoint for online sales, we will use the following formula:

• Master Breakpoint * Online Sales Portion Percentage = Online Sales Breakpoint

This means that our calculation is the following:

• $200,000.00 * .40 = $80,000.00

$80,000.00 is our breakpoint for Online Sales.