Deja runs her own hot dog stand on the U of A campus. The monthly cost of the cart rental and business permit is currently \($300\), but she has been given the option of changing the arrangements to \($100\) plus \($0.25\) for every unit of product sold from her stand.

1. At what point in sales volume will Deja be indifferent between the two options?

2. If Deja typically sells 700 units a month, which option will she prefer?