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All parts please Homework: HW #5 - Chapter 7 Sa Score: 0.17 of 1 pt 2 of 10 (2 complete) HW Score: 7.18%, 0.72 of
All parts please
Homework: HW #5 - Chapter 7 Sa Score: 0.17 of 1 pt 2 of 10 (2 complete) HW Score: 7.18%, 0.72 of 10 % 57-17 (similar to) Question Help The Yummy Delights Factory plans to open a new retail store in Seattle, Washington. The store will sell specialty cupcakes for $4 per cupcake (each cupcake has a variable cost of $1.) The company is negotiating its lease for the new store. The landlord has offered two leasing options: 1) a lease of $4,500 per month; or 2) a monthly lease cost of $3,500 plus 5% of the company's monthly sales revenue. Requirements 1. If the Yummy Delights Factory plans to sell 4,000 cupcakes a month, which lease option would cost less each month? Why? 2. If the company plans to sell 5,800 cupcakes a month, which lease option would be more attractive? Why? Requirement 1. If the Yummy Delights Factory plans to sell 4,000 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 = Fixed costs, VCU = Variable costs per unit) (VCU (option 1) Units) + FC (option 1) = (VCU (option 2) Units) + FC (option 2) The indifference point (in number of cupcakes) isStep by Step Solution
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