1. 2. 3. Calculate the breakeven point in units for (a) option 1 and (b) option 2. At what level of revenues will Chloe Rugs earn the same operating income under either option? a. For what range of unit sales will Chloe Rugs prefer Option 1? b. For what range of unit sales will Chloe Rugs prefer Option 2? Calculate the degree of operating leverage at sales of 76 units for the two rental options. 4. Briefly explain and interpret your answer to requirement 3.