(%) S7-17 (similar to) Question Help The Heavenly Cakes Factory plans to open a new retail store in Seattle, Washington. The store will sell specialty cupcakes for $4 per cupcake (each cupcake has a variable cost of $2.) The company is negotiating its lease for the new store. The landlord has offered two leasing options: 1) a lease of $3,000 per month, or 2) a monthly lease cost of $1,200 plus 10% of the company's monthly sales revenue Requirements 1. If the Heavenly Cakes Factory plans to sell 3,900 cupcakes a month, which lease option would cost less each month? Why? 2. If the company plans to sell 5,300 cupcakes a month, which lease option would be more attractive? Why? Requirement 1. If the Heavenly Cakes Factory plans to sell 3,900 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) x Units) + FC (option 2) The indifference point is cupcakes Enter any number in the edit fields and then click Check