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please help with the unsolved question #3 Coffee Rugs is holding a 2-week carpet sale at Joke's Club, alocal warehouse store. Coffee Rugs plans to

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please help with the unsolved question #3

Coffee Rugs is holding a 2-week carpet sale at Joke's Club, alocal warehouse store. Coffee Rugs plans to sel carpets for $750 each. The company will purchase the carpets from a local dstributor for 480 each, with the privilege of returning any unsold units for a full refund. Joke's Ckb has offered Coffee Rugs two payment altematives for the use of space (Click the icon to view the additional information.) Read the tecuirements 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 Cakculate the breakeven point in units for option 1, then option 2.(Round your answers up to the nearest whole number. Enter " for zero balances.) Unts 35 (a) Option (b) Option 2 Requirement 2. At what level of revenuies wil Coffee Rugs ern the same cperating income under either option? a For what range of unit sales will Coffee Rug prefer option 1? b, For what range of unit sales will Coffee Rugs prefer option 2? Be n by determin ariable costs Q Quantity of units sold the ro mula 10 calculate the operating income where each option is equal Abbreviation used: FC-Fi ed costs SPSelling price VC- Option 1 Option 2 Now calculate the level of revenues It wil take 105 to using these units equal a. For what range of unit sales will Coffee Rugs prefer option 1 Option 1 would be preferred when units soldexceed the units you determined for the level of revenues when the two options earned the same operating units to generate the same operating income under either option. The level of revenues under either option 78,750 income b. For what range of unit sales will Coffee Rugs prefer option 2? Coffee Rugs woud prefer option 2 when units sold are less than the unns you determined for the level ot revenues when the two options eamed the same operating income Requirement 3. Calculate the degree of operating leverage at sales of 105 units for the two rental options Begin by determining the formula to calculate the degree of cperating leverage. Then, calculate the degree of operating leverage for option 1, then option 2 (Rouncd our answers to two decimal places. XXX) Degree of Contribution margin Operating incomeoperating leverage Option 1 Option 2

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