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Carmel Rugs is holding a 2-week carpet sale at Jackie's Club, a local warehouse store. Carmel Rugs plans to sell carpets for $700 each.

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Carmel Rugs is holding a 2-week carpet sale at Jackie's Club, a local warehouse store. Carmel Rugs plans to sell carpets for $700 each. The company will purchase the carpets from a local distributor for $420 each, with the privilege of returning any unsold units for a full refund. Jackie'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 Require Begin by 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? hit Numb Calculat (a) Opti 3. a. For what range of unit sales will Carmel Rugs prefer Option 1? b. For what range of unit sales will Carmel Rugs prefer Option 2? Calculate the degree of operating leverage at sales of 60 units for the two rental options. 4. Briefly explain and interpret your answer to requirement 3. umber. Enter "0" for zero balances.)

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