Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need the last two E3-17 (similar to) Question Help Candy Rugs is holding a two-week carpet sale at Jokes Club, a local warehouse store. Candy

image text in transcribed

need the last two

E3-17 (similar to) Question Help Candy Rugs is holding a two-week carpet sale at Jokes Club, a local warehouse store. Candy Rugs plans to sell carpets for $1,000 each. The company will purchase the carpets from a local distributor for $400 each, with the privilege of returning any un units for a full refund. Joke's Club has offered Candy Rugs two payment alternatives for the use of space Option 1: A txed payment of $17,400 for the sale penod Option 2: 20% of total revenues earned during the sale penod Assume Candy Rugs will incur no other costs. Read the requirements Calculate the breakeven point in units for option 1, then option 2. (Complete all answer boxes. For amounts with a "O" balance, make sure to enter "D' in the appropriate cell. Round your answers up to the nearest whole number.) Units 29 (a) Option1 (o) Option 2 Requirement 2. At what level of revenues will Candy Rugs earn the same operating income under either option? First, detemine the formula to calculate the level of revenues. Option 2 Variable c Option 1 Sale price -Variable costs Fixed cost Sale price Now calculate the level of revenues It will take 37 nits to generate the same operating income under either option. The level of revenues under either option using these units equais$34800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions