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Wax Art plans to open a new retail store in Eastport, Maine. The store will sell specialty candles for an average of $45 each. The

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Wax Art plans to open a new retail store in Eastport, Maine. The store will sell specialty candles for an average of $45 each. The average variable costs per candle are as follows: Wax $10 Other additives $4 Base $2 . The company is negotiating its lease for the new location. The landlord has offered two leasing options: Option A) a lease of $3,600 per month; or Option B) a monthly lease cost of $990 plus 20% of the company's monthly sales revenue. The company expects to sell approximately 240 candles per month Read the requirements. . Requirement 1. Which lease option is more attractive for the company under its current sales expectations? Calculate the total lease cost under Option A and Option B. Begin by identifying the formula to calculate the total costs. Total lease costs (Consider only the fixed and variable costs related to the lease options.) The total lease cost under Option Ais (Consider only the fixed and variable costs related to the lease options.) The total lease cost under Option Bis Which lease option is more attractive for the company under its current sales expectations? The lease option that is more attractive for the company under its current sales expectations is because it Requirement 2. At what level of sales (in units) would the company be indifferent between the two lease options? Show your proof Begin by selecting the equation to determine the indifference point. (Abbreviations used" FC = Fixed costs, VCU - Variable costs per unit) Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Which lease option is more attractive for the company under its current sales expectations? Calculate the total lease cost under: Option A Option B 2. At what level of sales in units) would the company be indifferent between the two lease options? Show your proof. 3. If the company's expected sales were 790 candles instead of the projection listed in the exercise, which lease options would be more favorable for the company? Why? Print Done qorom ni

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