ACC241 Summer Session A 2020 Homework: HW #5 - Chapter 7 Save Score: 0.17 of 1 pt 2 of 10 (9 complete) W Score: 69.52%, 6.95 of 1.. W S7-17 (similar to) Question Help The Cupcake World Factory plans to open a new retail store in Lansing, Michigan. The store will sell specialty cupcakes for $6 per cupcake (each cupcake has a variable cost of $3.) The company is negotiating its lease for the new store. The landlord has offered two leasing options: 1) a lease of $2,000 per month; or 2) a monthly lease cost of $800 plus 5% of the company's monthly sales revenue. Requirements 1. If the Cupcake World Factory plans to sell 2,000 cupcakes a month, which lease option would cost less each month? Why? 2. If the company plans to sell 5,000 cupcakes a month, which lease option would be more attractive? Why? Requirement 1. If the Cupcake World Factory plans to sell 2,000 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) (VCU (option 1) x Units) + FC (option 1) = (vcu (option 2) x Units) + FC (option 2) The indifference point is 14001 cupcakes. Enter any number in the edit fields and then click Check Answer. 2 parts remaining Clear All Final Check