please complete all 8 parts. Thank you
Curt Rugs is holding a 2-week carpet sale at Jamison's Club, a local warehouse store. Curt Rugs plans to sell carpets for $600 each. The company will purchase the carpets from a local distributor for $330 each with the privilege of returning any unsold units for a full refund, Jamison'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 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 X 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 other option? a. For what range of unit salos wil Curt Rugs prefer option 1? b. For what range of unit sales will Curt Rugs profor option ? 3. Calculate the degree of operating leverage at sales of 72 units for the two rental options 4. Briefly explain and interpret your answer to requirement 3 More info Option 1: A fixed payment of $8,640 for the sale period Option 2 20% of total revenues earned during the sale period Assume Curt Rugs will incur no other costs Print Done Choose from any did Print Done Check Answer 8 Parts remaining hp $600 each. The company will purchase the carpets from a local distributor for $330 each, v s for the use of space. i Requirements X 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 72 units for the two rental options 4. Briefly explain and interpret your answer to requirement 3. Print Done late the breakeven point in units for (a) option 1 and (b) option 2. he formula to calculate the breakeven point in units. breakeven More Info . Option 1: A fixed payment of $8,640 for the sale period Option 2: 20% of total revenues earned during the sale period Assume Curt Rugs will incur no other costs. Print Done
