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drop down: This is all the information i was given. I do this all the time, other problems have been solved like this, with just
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This is all the information i was given. I do this all the time, other problems have been solved like this, with just this amount of information. If you are having trouble, let someone else work on it. I am paying my own money for this service too.
1. Which lease option is more attractive for the company under its current sales expectations? Calculate the total lease cost under: Option A Option B 2. At what level of sales (in units) would the company be indifferent between the two lease options? Show your proof. 3. If the company's expected sales were 700 candles instead of the projection listed in the exercise, which lease options would be more favorable for the company? Why? Candle Creations plans to open a new retail store in Portland, Maine. The store will sell specialty candles for an average of $20 each. The average variable costs per candle are as follows: Wax $5 Other additives $2 Base $1 The company is negotiating its lease for the new location. The landlord has offered two leasing options: Option A) a lease of $2,400 per month; or Option B) a monthly lease cost of $900 plus 15% of the company's monthly sales revenue. The company expects to sell approximately 450 candles per month. Read the requirements, . Requirement 1. Which lease option is more attractive for the company under its current sales expectations? Calculate the total lease cost under Option A and Option B. Begin by identifying the formula to calculate the total costs. = Total lease costs LA 2 Contribution margin per unit in Portlan average Contribution margin ratio Sales revenue Total fixed expenses (lease) Total variable expenses (lease) ctive for th Units sold ital costsStep by Step Solution
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