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Please answer both parts of the question The Tasty Treats Factory plans to open a new retail store in Medina, Ohio. The store will sell

image text in transcribedPlease answer both parts of the question

The Tasty Treats Factory plans to open a new retail store in Medina, Ohio. The store will sell specialty cupcakes for $6 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 $2,000 per month; 2) a monthly lease cost of $800 plus 5% of the company's monthly sales revenue. Requirements 1. If the Tasty Treats Factory plans to sell 2.000 cupcakes a month, which lease option would cost less each month? Why? 2. If the company plans to sell 5,000 cupcakes a month, which lease option would be more attractive? Why? Requirement 1. If the Tasty Treats Factory plans to sell 2.000 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) x Units) + FC (option 1) -(VCU (option 2) Units). FC (option 2) The indifference point is cupcakes. Enter any number in the edit fields and then click Check

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