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The Yummy Delights Factory plans to open a new retail store in Casper, Wyoming. The store will sell specialty cupcakes for $4 per cupcake (each
The Yummy Delights 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 $2.) The company is negotiating its lease for the new store. The landlord has offered two leasing options: 1) a lease of $3,000 per month; or 2) a monthly lease cost of $1,200 plus 10% of the company's monthly sales revenue. Requirements 1. If the Yummy Delights Factory plans to sell 3,700 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
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