with the peivioge of returning any unsold units for a fult refund. Jean's Club has ollered Color Rugs two payment allernatives for Be use of space (B) (Chick the icon to vew the additional information) Read the toguiremerts Requirement 1. Caiculate the bieakeven pont in units tor (a) Upton 1 and (b) Uption '2. Begin by dotermining the formula to calculate the beeakeven point in units Number of unds lo tieakewen = Fixod cost Contribution margin per unit Coloulate the breakeven point in units for option 1, then option 2 (Round yout answers up to the nearest whole number. Emet ror for zere falancess) wal Coloi Rugs preter option 2? Now calculate the level of tewnues It will takel usreg these unts equal More info - Option 1: A fixed payment of $3,630 for the sale period - Option 2: 10% of total revenues earned during the sale period Assume Color Rugs will incur no other costs Requirements 1. Calculate the breakeven point in units for (a) option 1 and (b) option 2. 2. At what level of revenues will Color Rugs earn the same operating income under either option? a. For what range of unit sales will Color Rugs prefer Option 1? b. For what range of unit sales will Color Rugs prefer Option 2? 3. Calculate the degree of operating leverage at sales of 55 units for the two rental options. 4. Briefly explain and interpret your answer to requirement 3