Requirements 1 & 2 Please!

The Cupcake World Factory plans to open a new retail store in St. Louis, Missouri. The store will sell specialty cupcakes for $5 per cupcake (each cupcake month; or 2 ) a monthly lease cost of $1,500 plus 8% of the company's monthly sales revenue. Requirements 1. If the Cupcake World Factory plans to sell 4,000 cupcakes a month, which lease option would cost less each month? Why? 2. If the company plans to sell 5,800 cupcakes a month, which lease option would be more attractive? Why? Requirement 1. If the Cupcake World Factory plans to sell 4,000 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)