Business, 16.04.2020 00:37 ketabug50

The Cupcake Heaven Factory plans to open a new retail store in Orlando, Florida. The store will sell specialty cupcakes for $ 3 per cupcake (each cupcake has a variable cost of $ 1.) The company is negotiating its lease for the new store. The landlord has offered two leasing options: 1) a lease of $ 4,000 per month; or 2) a monthly lease cost of $ 2,500 plus 10 % of the company's monthly sales revenue. Requirements 1. If the Cupcake Heaven Factory plans to sell 4,500 cupcakes a month, which lease option would cost less each month? Why? 2. If the company plans to sell 6,000 cupcakes a month, which lease option would be more attractive? Why?

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The Cupcake Heaven Factory plans to open a new retail store in Orlando, Florida. The store will sell...

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