content area top Part 1 Cover Rugs is holding a 2-week carpet sale at Josh's Club, a local warehouse store. Cover Rugs plans to sell carpets for $ 750 each. The company will purchase the carpets from a local distributor for $ 480 each, with the privilege of returning any unsold units for a full refund. Josh's Club has offered Cover Rugs two payment alternatives for the use of space. Option 1: A fixed payment of $ 9 comma 450 for the sale period times Option 2: 12% of total revenues earned during the sale period Assume Cover Rugs will incur no other costs. At what level of revenues will Cover Rugs earn the same operating income under either option? a. For what range of unit sales will Cover Rugs prefer Option 1? b. For what range of unit sales will Cover Rugs prefer Option 2