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Which lease option is more attractive for the company under its current sales expectations? Calculate the total lease cost under: a. Option A b. 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 600 candles instead of the projection listed in the exercise, which lease options would be more favorable for the company? Why? Requirement 1 Requirement 2 Requirement 3

/in /by

Which lease option is more attractive for the company under its
current sales expectations? Calculate the total lease cost under:
a. Option A
b. 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 600 candles instead of the
projection listed in the exercise, which lease options would be more
favorable for the company? Why? Requirement 1 Requirement 2 Requirement 3

 
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