Same question but for these Values (See data table screen shot)

Comfy Carpets Inc., is considering three possible countries for the sole manufacturing site of its newest area rug:

ItalyItaly,

FranceFrance,

and

SingaporeSingapore.

All area rugs are to be sold to retail outlets in the United States for

$ 280$280

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.

LOADING...

(Click the icon to view the cost data.)Read the requirements

LOADING...

.

Requirement 1. Compute the breakeven point for

Comfy CarpetsComfy Carpets,

Inc., in each country in (a) units sold and (b) revenues.

Determine the formulas for the breakeven point in units and the breakeven point in revenues. Begin with the breakeven point in units, then the breakeven point in revenues.

Fixed costs

/

Contribution margin per unit

=

Breakeven point in units

Breakeven point in units

x

Sales price per unit

=

Breakeven point in revenues

Compute the breakeven point for

Comfy CarpetsComfy Carpets,

Inc., in each country in (a) units sold and (b) revenues using the formulas you determined above.

		Italy
(a)	Breakeven point in units	61,000
(b)	Breakeven point in revenues	$17,080,000

France

34,375

$9,625,000

Singapore

150,000

$42,000,000

Requirement 2. If

Comfy CarpetsComfy Carpets,

Inc., plans to produce and sell

90 comma 00090,000

rugs in

20142014,

what is the budgeted operating income for each of the three manufacturing locations? Comment on the results.

Determine the formula to calculate the operating income or loss.

Revenues

-. .

Variable costs

-

Fixed costs

=

Operating income (loss)

Another way to solve for the operating income or loss is:

(

Contribution margin per unit

x. .

Units sold

) -

Fixed costs

=

Operating income (loss)

Compute the budgeted operating income or loss for

Comfy CarpetsComfy Carpets,

Inc., in each country if the company produces and sells

90 comma 00090,000

area rugs in

20142014.

(Use parentheses or a minus sign when entering operating losses.)

	Italy
Budgeted operating income	$4,466,000

France

$9,345,000

Singapore

$(8,820,000)

France

has the lowest breakeven points since it has the

lowest

fixed costs and the

lowest

variable cost per unit. Therefore, at any given selling price

France

will always have the highest operating income.

SingaporeSingapore's

breakeven point is

higher

than the budgeted sales in

20142014,

therefore an

operating loss

is budgeted.

i Data Table Sales Price to Retail Country Outlets Variable Annual Variable Marketing and Fixed Manufacturing Cost Distribution Cost Costs per Area Rug per Area Rug 9,394,000 $ 70.00 $ 56.00 5,775,000 65.00 47.00 22,050,000 70.00 63.00 Italy France 280.00 $ 280.00 280.00 Singapore Print Done Comfy Carpets, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Italy, France, and Singapore. All area rugs are to be sold to retail outlets in the United States for $280 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. (Click the icon to view the cost data.) Read the requirements. Requirement 1. Compute the breakeven point for Comfy Carpets, Inc., in each country in (a) units sold and (b) revenues. Determine the formulas for the breakeven point in units and the breakeven point in revenues. Begin with the breakeven point in units, then the breakeven point in revenues. Fixed costs Contribution margin per unit = Breakeven point in units Breakeven point in units x Sales price per unit = Breakeven point in revenues Compute the breakeven point for Comfy Carpets, Inc., in each country in (a) units sold and (b) revenues using the formulas you determined above. Italy France Singapore (a) Breakeven point in units 61,000 34,375 1 50,000 (b) Breakeven point in revenues $ 17,080,000 $ 9,625,000'$ 42,000,000 Requirement 2. If Comfy Carpets, Inc., plans to produce and sell 90,000 rugs in 2014, what is the budgeted operating income for each of the three manufacturing locations? Comment on the results. Determine the formula to calculate the operating income or loss. Revenues . Variable costs . Fixed costs = Operating income (loss) Another way to solve for the operating income or loss is: ( Contribution margin per unit x. Fixed costs = Operating income (loss) Compute the budgeted operating income or loss for Comfy Carpets, Inc., in each country if the company produces and sells 90,000 area rugs in 2014. (Use parentheses or a minus sign when entering operating losses.) Italy France Singapore Budgeted operating income $ 4,466,000$ 9,345,000$ (8,820,000) France has the lowest breakeven points since it has the lowest fixed costs and the lowest variable cost per unit. Therefore, at any given selling price France will always have the highest operating income. Singapore's breakeven point is higher than the budgeted sales in 2014, therefore an operating loss is budgeted