Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need these 2 fill in the blanks answered . I posted pics of information needed as well Option A Option B equirem root Total

image text in transcribed
image text in transcribedI need these 2 fill in the blanks answered . I posted pics of information needed as well
image text in transcribed
Option A Option B equirem root Total variable expenses Total fixed expenses Begin by s per unit) Total lease costs The total lease cost under Option B is $ 4,000 Which lease option is more attractive for the company under its current sales expectations? The lease option that is more attractive for the company under its current sales expectations is option B, the fixed lease payment plus sales based commission because it results in the lowest total lea Requirement 2. At what level of sales (in units) would the company be indifferent between the two lease op proof. Begin by selecting the equation to determine the indifference point. (Abbreviations used" FC - Fixed costs, per unit) (VCU (option A) x Units) + FC (option A) = (VCU (option B) x Units) + FC (option B) The indifference point is candles in the edit fields and then click Check Answer. E7-36A (similar to) 15 Question Help Candle Creations plans to open a new retail store in Waterville, Maine. The store will sell specialty candles for an average of $25 each. The average variable costs per candle are as follows: Wax $8 Other additives $3 Base $2 The company is negotiating its lease for the new location. The landlord has offered two leasing options: Option A) a lease of $4,500 per month; or Option B) a monthly lease cost of $1,500 plus 20% of the company's monthly sales revenue. The company expects to sell approximately 500 candles per month Read the requirements

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Brinks Modern Internal Auditing A Common Body Of Knowledge

Authors: Robert R. Moeller

8th Edition

9781119016984

More Books

Students also viewed these Accounting questions

Question

5. Understand how cultural values influence conflict behavior.

Answered: 1 week ago

Question

8. Explain the relationship between communication and context.

Answered: 1 week ago