The Cupcake Factory plans to open a new retail store in Medina, Ohio. The Cupcake Factory will sell specialty cupcakes for $5 per cupcake (each cupcake has a variable cost of $2.) The company is negotiating its lease for the new Medina location. The landlord has offered two leasing options: 1) a lease of $2,000 per month; or 2) a monthly lease cost of $1,000 plus 4% of the company's monthly sales revenue. Required:
a. If the Cupcake Factory plans to sell 1,000 cupcakes a month, which lease option would cost less each month? Why?
b. If the company plans to sell 1,800 cupcakes a month, which lease option would be more attractive? Why?

At april 1, 2019, the food and drug administration is in the process of investigating allegations of false marketing claims by hulkly muscle supplements. the fda has not yet proposed a penalty assessment. hulkly’s fiscal year ends on december 31, 2018. the company’s financial statements are issued in april 2019. required: for each of the following scenarios, determine the appropriate way to report the situation. 1. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 2. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is probable. 3. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 4. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is probable.