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?

Atax on the sellers of coffee will a. increase the price of coffee paid by buyers, increase the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. b. increase the price of coffee paid by buyers, increase the e ffective price of coffee received by sellers, and decrease the equilibrium quantity of coffee. c. increase the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. d. increa se the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee.