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please claculate the indifference point The Yummy Delights Factory plans to open a new retail store in St. Louis, Missouri. The store will sell specialty
please claculate the indifference point
The Yummy Delights Factory plans to open a new retail store in St. Louis, Missouri. The store will sell specialty cupcakes for $5 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 $3,500 per month; or 2) a monthly lease cost of $1,500 plus 8% 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 Step by Step Solution
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