a Carmel Rugs is holding a 2-week carpet sale at Jerry's Club, a local warehouse store. Carmel Rugs plans to sell carpets for $800 each. any unsold units for a full refund. Jerry's Club has offered Carmel Rugs two payment alternatives for the use of space. (Click the icon to view the additional information.) Read the requirements Requirement 1. Calculate the breakeven point in units for (a) Option 1 and (b) Option 2. Begin by determining the formula to calculate the breakeven point in units. Number of units to breakeven RE More info - X Option 1: A fixed payment of $8,540 for the sale period Option 2: 15% of total revenues eamed during the sale period Assume Carmel Rugs will incur no other costs. 3 Print Done =ans to sell carpets for $800 each. The company will purchase the carpets from a local distributor for $560 each with the privilege of returning he use of space. - Requirements 1. Calculate the breakeven point in units for (a) option 1 and (b) option 2. 2. At what level of revenues will Carmel Rugs earn the same operating income under either option? a. For what range of unit sales will Carmel Rugs prefer Option 1? b. For what range of unit salos will Carmel Rugs profor Option 2? 3. Calculate the degree of operating leverage at sales of 72 units for the two rental options 4. Briefly explain and interpret your answer to requirement 3. Print Done