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Please help me with this problem given the requirements and the data below E7-36A (similar to) Worldly Creation Company plans to open a new retail
Please help me with this problem given the requirements and the data below
E7-36A (similar to) Worldly Creation Company plans to open a new retail store in Eastport, Maine. The store Will sell specialty candles for en average of EO each The average variable costs per candle ere as follows: wax Other additives S3 Base S2 Question Help The company is negotiating its lease for the new locatiom The landlord hes offered two leasing options: Option A) a lease of $2, 700 per month; or Option 8) a monthly lease cost of Sl,500 plus 10% of the companys monthly sales revenue. The company expects to sell approximately 300 candles per month. Reed the Igguirements. Requirement 1. Which lease option is more attractive for the company under its current sales expectations? Calculate the total lease cost under Option A end Option B. Begin by identifying the formula to calculate the total costs. Choose from any drop-down list and then click Check Answer remaining x Requirements . Which lease option is more attractive for the company under ts 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. Ifthe company's expected sales were 550 candles instead of the projection listed in the exercise. which lease options would be more favorable for the company? Why? Print Clear Done Check Answer
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