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how do you calculate to find the indifference point? Cou S7-17 (similar to) Question Help The Tasty Treats Factory plans to open a new retail

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how do you calculate to find the indifference point?
Cou S7-17 (similar to) Question Help The Tasty Treats Factory plans to open a new retail store in Washington, DC The store will sel specialty cupcakes for $5 per cupcake (each cupcake has a variable cost of $3.) The company is negotiating its lease for the new store. The landlord has offered two leasing options: 1) a lease of $5,500 per month or 2) a monthly lease cost of $2,500 plus 6% of the company's monthly sales revenue Requirements 1. If the Tasty Treats Factory plans to sell 9.200 cupcakes a month, which sease option would cost less each month? Why? 2. If the company plans to sell 11.200 cupcakes a month, which lease option would be more attractivo? Why? Requirement 1. if the Tasty Treats Factory plant to vol 9,200 cupcakes a month, which toate option would cost less each month? Why? Begin by calculating the indifference point, Select the equation to determine the indifference point. (Abbreviations used: FC Fund onts, Cu-Variable costs per (VCU (option 1) Units). FC (option 1) (VCU (option 2) Units) + FC (option) The indiference point (in number of cupcakes) 10.000 The lease option that would have the lowest cost each month if Tasty Treats plans to sell 9.200 cupcakes a month is option 2, the fixed lease payment plus sales based commission because the sales volume is less than the indifference point Requirement 2. If the company plans to sell 15,200 cupcakes a month, which tense option would be more attractive? Why? The lease option that would have the lowest cost each month if Tasty Treats plans to soll 11.200 cupcakes a month is option 1, the fixed lease payment because the sales volume is more than the indifference point Cou S7-17 (similar to) Question Help The Tasty Treats Factory plans to open a new retail store in Washington, DC The store will sel specialty cupcakes for $5 per cupcake (each cupcake has a variable cost of $3.) The company is negotiating its lease for the new store. The landlord has offered two leasing options: 1) a lease of $5,500 per month or 2) a monthly lease cost of $2,500 plus 6% of the company's monthly sales revenue Requirements 1. If the Tasty Treats Factory plans to sell 9.200 cupcakes a month, which sease option would cost less each month? Why? 2. If the company plans to sell 11.200 cupcakes a month, which lease option would be more attractivo? Why? Requirement 1. if the Tasty Treats Factory plant to vol 9,200 cupcakes a month, which toate option would cost less each month? Why? Begin by calculating the indifference point, Select the equation to determine the indifference point. (Abbreviations used: FC Fund onts, Cu-Variable costs per (VCU (option 1) Units). FC (option 1) (VCU (option 2) Units) + FC (option) The indiference point (in number of cupcakes) 10.000 The lease option that would have the lowest cost each month if Tasty Treats plans to sell 9.200 cupcakes a month is option 2, the fixed lease payment plus sales based commission because the sales volume is less than the indifference point Requirement 2. If the company plans to sell 15,200 cupcakes a month, which tense option would be more attractive? Why? The lease option that would have the lowest cost each month if Tasty Treats plans to soll 11.200 cupcakes a month is option 1, the fixed lease payment because the sales volume is more than the indifference point

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