Comfy Carpets, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Italy, Singapore, and Spain. All area rugs are to be sold to retail outlets in the United States for $240 per unit. These retail outlets add their own markup when selling to final customers. Fixed costs and variable cost per unit (area rug) differ in the three countries : (Click the icon to view the cost data.) Read the requirements. Requirement 1. Compute the breakeven point for Comfy Carpets, Inc., in each country in (a) units sold and (b) revenues. Determine the formulas for the breakeven point in units and the breakeven point in revenues. Begin with the breakeven point in units, then the breakeven point in revenues. = Breakeven point in units = Breakeven point in revenues Compute the breakeven point for Comfy Carpets, Inc., in each country in (a) units sold and (b) revenues using the formulas you determined above. Italy Singapore Spain (a) Breakeven point in units (b) Breakeven point in revenues Requirement 2. If Comfy Carpets, Inc., plans to produce and sell 70,000 rugs in 2014, what is the budgeted operating income for each of the three manufacturing locations? Comment on the results. Determine the formula to calculate the operating income or loss. = Operating income (loss) Choose from any list or enter any number in the input fields and then continue to the next question. Comfy Carpets, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Italy, Singapore, and Spain. All area rugs are to be sold to retail outlets in the United States for $240 per unit. These retail outlets add their own markup when selling to final customers. Fixed costs and variable cost per unit (area rug) differ in the three countries. E: (Click the icon to view the cost data.) Read the requirements Requirement 2. If Comfy Carpets, Inc., plans to produce and sell 70,000 rugs in 2014, what is the budgeted operating income for each of the three manufacturing locations? Comment on the results. Determine the formula to calculate the operating income or loss. Operating income (loss) Another way to solve for the operating income or loss is: = Operating income (loss) Compute the budgeted operating income or loss for Comfy Carpets, Inc., in each country if the company produces and sells 70,000 area rugs in 2014. (Use parentheses or a minus sign when entering operating losses.) Italy Singapore Spain Budgeted operating income fixed costs and the variable cost per unit. Therefore, at any given selling price has the lowest breakeven points since it has the will always have the highest operating income. Spain's breakeven point is than the budgeted sales in 2014, therefore an is budgeted. Choose from any list or enter any number in the input fields and then continue to the next question. Variable Country Sales Price to Retail Outlets 240.00 $ 240.00 240.00 Annual Variable Fixed Manufacturing Cost Costs per Area Rug 9,600,000 $ 55.00 $ 5,304,000 45.00 18,720,000 50.00 Marketing and Distribution Cost per Area Rug 35.00 39.00 46.00 Italy Singapore Spain
