Home Decor, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Singapore, Spain, and Italy. All area rugs are to be sold to retail outlets in the United States for $250 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 Home Decor, 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 Home Decor, Inc., in each country in (a) units sold and (b) revenues using the formulas you determined above. Singapore Spain Italy (a) Breakeven point in units (b) Breakeven point in revenues Requirement 2. If Home Decor, 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) Data Table Country Variable Marketing Sales Price to Annual Fixed Variable Manufacturing and Distribution Cost Retail Outlets Costs Cost per Area Rug per Area Rug 250.00 $ 7,000,000 $ 90.00 $ 35.00 Singapore Spain 250.00 5,130,000 85.00 30.00 Italy 250.00 9,300,000 100.00 90.00 Print Done Requirement 2. If Home Decor, 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 Home Decor, 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.) Singapore Spain Italy Budgeted operating income fixed costs and the variable cost per unit. Therefore, at any given selling price will always have the highest has the lowest breakeven points since it has the operating income. Italy'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