Witt's Cabinets sells kitchen cabinets for $$900$ per unit. The company will manufacture the cabinets for $$780$ each.

Assume no other costs.

Witt's Cabinets has two options for renting a warehouse for selling the cabinets:

A$.10\%$ of total revenues earned during the selling period.

B$.$ A fixed payment of $$7,600$ for the selling period.

Required

$1.$ For both rental options, calculate the breakeven point in units & dollars.

$2.$ For both rental options, calculate the degree of operating leverage if $60$ units are sold.

$3.$ Why are the answers for #$2$ different? Explain.