More Info Option 1: A fixed payment of $10,260 for the sale period Option 2: 10% of total revenues earned during the sale period Assume Curt Rugs will incur no other costs. Print Done Curt Rugs is holding a 2-week carpet sale at Jackie's Club, a local warehouse store. Curt Rugs plans to sell carpets for $900 each. The company will purchase the carpets from a local distributor for $630 each, with the privilege of returning any unsold units for a full refund. Jackie's Club has offered Curt Rugs two payment alternatives for the use of space. (Click the icon to view the additional information.) Read the requirements. 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 "O" for zero balances.) Units (a) Option 1 (b) Option 2 Requirements 1. Calculate the breakeven point in units for (a) option 1 and (b) option 2. 2. At what level of revenues will Curt Rugs earn the same operating income under either option? a. For what range of unit sales will Curt Rugs prefer Option 1? b. For what range of unit sales will Curt Rugs prefer Option 2? 3. Calculate the degree of operating leverage at sales of 76 units for the two rental options. 4. Briefly explain and interpret your answer to requirement 3. Print Done