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The Soft Glow Company Portland, Maine. The Soft Glow Company The Soft Glow Company plans to open a new retail store in for an average

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The Soft Glow Company Portland, Maine. The Soft Glow Company The Soft Glow Company plans to open a new retail store in for an average of $30 each. The average variable costs per candle are ats follows: Wax $6 Other additives $3 Base $3 The company is negotlating its lease for the new location. The landlord has offered two leasing options: Option A a lease of $3,000 per month or Options a monthly lease of $1,650 plus 10% of the company's monthly sales revenue. The company expects to sell approximately 250 candles per month. equirements: Which lease option is more attractive for the company under its current sales expectations? Calculate the total lease cost under each option. At what level of sales (in units) would the company be indifferent between the two lease options? Show your calculations If the company's expected sales were 600 candles, instead of 250 candles, which lease option would be more favorable for the company? Why? 1. 2. 3

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