(i. (Click the ioon to view the additionas information) Read the iesuiremarb: Requirement 1, Colculate the breakeven point in unsts for (a) Option 1 and (b) Option 2 . Eegin by desermining Ee formula to caloviate the breakeven poirt in unth. Number of unes to brealevinn m More info - Option 1: A fixed payment of $8,400 for the sale period - Option 2:20\% of total revenues earned during the sale period Assume Cathy Rugs will incur no other costs. 1. Calculate the breakeven point in units for (a) option 1 and (b) option 2 . 2. At what level of revenues will Cathy Rugs earn the same operating income under either option? a. For what range of unit sales will Cathy Rugs prefer Option 1? b. For what range of unit sales will Cathy Rugs prefer Option 2? 3. 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