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all information was originally provided cost of $1,500 plus 8% of the company's monthly sales revenue. Requirements 1. If the Treat Factory Factory plans to
all information was originally provided
cost of $1,500 plus 8% of the company's monthly sales revenue. Requirements 1. If the Treat Factory Factory plans to sell 4,500 cupcakes a month, which lease option would cost less each month? Why? 2. If the company plans to sell 6,200 cupcakes a month, which lease option would be more atractive? Why? Requirement 1. If the Treat Factory Factory plans to sell 4,500 cupcakes a month, which lease option would cost less each month? Why? Begin by calculating the indifference point. Select the equation to determine the indifference point. (Abbreviations used: FC=F Fixad conts, vCU = Vuratie costs per unit) (VVCU(option1)Units)+FC(option1)=(VCU(option2)Units)+FC(option2) The Treat Factory Factory plans to open a new retail store in Lansing. Michigan. The store will sell specialy cupcakes for $5 per cubcake (esch aupcake has a varnatie cost of S1.) The company is negotiating its lease for the new store. The landlord has ollered two leasing options: 1) a lease of 53,500 per monith; or 2 i a moritily lease cost of $1,500 ples 8% of the company's monthly sales rovenue. Requirements 1. If the Treat Factory Faciosy plans to sell 4,500 cupcakes a month, which lease option would cost less each month? Why? 2. If the cormany plans to sell 6.200 cupcakes a month, which lease option would be more altroctive? Why? Requirement 1. It the Treat Factory Factory plans to soll 4,500 cupcakes a month, which lease option would cost less each monih? Why? Begin by caleulating the inditterence point. Soloct the equation to dotormine the indifference point. (Abbreviations used: FC = Fixad costa. VCU = Yariabie costs per (init) (MCU(cotian1)UUnit)+FC(option1)=(VCU(option2)Units)+FC(option2) Step by Step Solution
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