b ti E3-30 (similar to) Chris Rugs is holding a 2-week carpet sale at Jamison's Club, a local warehouse store Chris Rugs plans to sell carpets for $800 each. The company will purchase the carpets from a local distributor for $580 each, with the privilege of returning any unsold units for a full refund. Jamison's Club has offered Chris Rugs two payment alternatives for the use of space Click the icon to view the additional information) Read the requirements ir 5 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 b fi Number of units to breakeven ir lo Requirements C 1. Calculate the breakeven point in units for (a) option 1 and (b) option 2 2. Al what level of revenues will Chris Rugs earn the same operating income under either option? a. For what range of unit sales wil Chris Rugs prefer Option 1? b. For what range of unit sales wil Chris Rugs prefer Option 27 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. Cho Print Done Check Answer 8 mm enal information.) even point in units for (a) Option 1 and (b) Option 2. - More Info Option 1: A fixed payment of $8,640 for the sale period Option 2:15% of total revenues earned during the sale period Assume Chris Rugs will incur no other costs. Print Done list and then click Check Answer. Clear All is course (ACC 300 Cost Accounting (1) is based on Horngren: Cost Accounting. 16e rms of Use Privacy Policy Copyright 2021 Pearson Education Inc. All Rights Reserved