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The Heavenly Cakes Factory plans to open a new retail store in Denver, Colorado. The store will sell specialty cupcakes for $5 per cupcake (each

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The Heavenly Cakes Factory plans to open a new retail store in Denver, Colorado. The store will sell specialty cupcakes for $5 per cupcake (each cupcake has a variable cost of $3.) The company is negotiating its lease for the new store. The landlord has offered two leaning options: 1) lease of $5,500 per month; or 2) a monthly lease cost of $2,500 plus 6% of the company's monthly sales revenue. Requirements 1. If the Heavenly Cakes Factory plans to sell 9,500 cupcakes a month, which leane option would cost less each month? Why? 2. If the company plans to sell 11,500 cupcakes a month, which lease option would be more attractive? Why? Requirement 1. If the Heavenly Cakes Factory plans to sell 9,500 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, VCU = Variable costs per unit) (VCU (option 1) Units) + FC (option 1) - (VCU (option 2) * Units) + FC (option 2) The indifference point in number of cupcakes) is

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