Variable
	Sales Price	Annual	Variable	Marketing and
	to Retail	Fixed	Manufacturing Cost	Distribution Cost
Country	Outlets	Costs	per Area Rug	per Area Rug
France	$280.00	$9,394,000	$70.00	$56.00
Singapore	280.00	5,775,000	65.00	47.00
Italy	280.00	22,050,000	70.00	63.00

The Rug Shop, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: France, Singapore, and Italy. 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 tor Ihe Rug Shop, 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. Breakeven point in units Breakeven point in revenues Compute the breakeven point for The Rug Shop, Inc., in each country in (a) units sold and (b) revenues using the formulas you determined above. France Italy Singapore (a) Breakeven point in units (b) Breakeven point in revenues