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Rugs-R-Us, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Brazil, Singapore, and France. All area rugs are

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Rugs-R-Us, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Brazil, Singapore, and France. All area rugs are to be sold to retail outlets in the United States for $240 per unit. These retail outlets add their own markup when selling to final customers. Fixed costs and variable cost per unit (area rug) differ in the three countries. Compute the breakeven point for Rugs-R-Us, Inc., in each country in (a) units sold and (b) revenues. If Rugs-R-Us, Inc., plans to produce and sell 70, 000 rugs in 2014, what is the budgeted operating income for each of the three manufacturing locations? Comment on the results

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