The Cupcake World Factory plans to open a new retail store in Casper, Wyoming. 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 World Factory plans to sell 4,200 cupcakes a month, which lease option would cost less each month? Why? 2. If the company plans to sell 7,000 cupcakes a month, which lease option would be more attractive? Why? Requirement 1. If the Cupcake World Factory plans to sell 4,200 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=F ixed costs, VCU= Variable costs per unit) ( VCU (option 1) Units )+FC (option 1) =( VCU (option 2) Units )+FC (option 2)