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The Cupcake Heaven Factory plans to open a new retail store in Atlanta, Georgia. The store will sell specialty cupcakes for $4 per cupcake (each

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The Cupcake Heaven Factory plans to open a new retail store in Atlanta, Georgia. The store will sell specialty cupcakes for $4 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 $4,500 per month; or 2) a monthly lease cost of $3,500 plus 5% of the company's monthly sales revenue. Requirements 1. If the Cupcake Heaven Factory plans to sell 4,500 cupcakes a month, which lease option would cost less each month? Why? If the company plans to sell 6,000 cupcakes a month, which lease option would be more attractive? Why? 2. Requirement 1. If the Cupcake Heaven Factory plans to sell 4,500 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, vcUVariable costs per unit) (VCU (option 1) x Units) +FC (option 1)-(VCU (option 2) x Units)+ FC (option 2) The indifference point is cupcakes

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