The Heavenly Cakes Factory plans to open a new retail store in Washington, DC. The store will sell specialty cupcakes for $5 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 $3,500 per month or 2) a monthly lease cost of $1,500 plus 8% of the company's monthly sales revenue. Requirements 1. If the Heavenly Cakes Factory plans to sell 4,500 cupcakes a month, which lease option would cost less each month? Why? 2. If the company plans to sell 6,500 cupcakes a month, which lease option would be more attractive? Why? Requirement 1. If the Heavenly Cakes Factory plans to sell 4,500 cupcakes a month, which fease 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 0