The Heavenly Cakes Factory plans to open a new retail store in Lansing, Michigan. The store will sell specialty cupcakes for $5 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 $5,000 per month, or 2) a monthly lease cost of $2,000 plus 10% of the company's monthly sales revenue. Requirements 1. If the Heavenly Cakes Factory plans to sell 4,000 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 Heavenly Cakes Factory plans to sell 4,000 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)