for $$350$ each, with the privilege of returning any unsold units for a full refund. Josh's Club has offered Chloe Rugs two payment alternatives for the use of space.

$($Click the icon to view the additional information.$)$

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 $=$ Fixed cost $$ Contribution margin per unit

Calculate the breakeven point in units for option $1,$ then option $2.($Round your answers up to the nearest whole number. Enter $"0"$ for zero balances.$)$

Units

$($a$)$ Option $1$

$($b$)$ Option $2$

Requirement $2.$ At what level of revenues will Chloe Rugs earn the same operating income under either option? a$.$ For what range of unit sales will Chloe Rugs prefer option $1?$ b$.$ For what range unit sales will Chloe Rugs prefer option $2?$

Begin by determining the formula to calculate the operating income where each option is equal. $($Abbreviation used: $FC=$ Fixed costs, $SP=$Selling price, $VC=$ Variable costs, $Q=Q$ uantity of units sold.$)$

$\backslash$table$[[,,$Option $1,,,=,,$Option $2,],[SP,,Q,,$ Q$),$FC$,,,Q,VC,,Q$