Color Rugs is holding a two-week carpet sale at Jerry’s Club, a local warehouse store. Color Rugsplans to sell carpets for $500 each. The company will purchase the carpets from a local distributorfor $350 each, with the privilege of returning any unsold units for a full refund. Jerry’s Club hasoffered Color Rugs two payment alternatives for the use of space.Option 1: A fixed payment of $5,000 for the Sale periodOption 2: 10% of total revenues earned during the Sale periodAssume Color Rugs will incur no other costs.Required1. 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 eitheroption?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 100 units for the two rental options.4. Briefly explain and interpret your answer to requirement 3.

Calculate the numerical value of the quantity asked.For a carpet manufacturer, the estimated annual demand is 20,000 yards of carpet with an annual carrying cost of $2.75 per yard. The manufacturing facility operates for 360 days and produces 400 yards of carpet per day. The cost of setting up the manufacturing process is $720. Determine the optimal order size. (answer should be correct to one decimal place)

Carpet Woes. Beau went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Carpet wrote down the proposed purchase price for him along with a statement that the price would be good for three months. Two months later Beau went back to ABC Carpet to purchase the carpet. Unfortunately, the price had gone up. Beau showed the manager his writing and guaranteed price, but the manager said that the offer was no longer good. Although he had to pay more than the ABC manager had initially promised, Beau proceeded to purchase his carpet from ABC Carpet, and he also contracted with ABC to do the installation. Unfortunately, Beau almost immediately started to have problems with the carpet. Beau told the sales manager of ABC Carpet that he was planning on bringing suit for breach of warranty. The sales manager, however, told him that the breach of warranty provisions only applied to sales of goods and that the carpet purchase was for installation, a service. Which of the following is true regarding whether the Uniform Commercial Code (UCC) applies to the contract Beau had with ABC Carpet?Multiple ChoiceCommon law applies, not the UCC, because the contract involves a mixed sale.The UCC applies, not common law, because the contract involves a mixed sale.The court will determine if the predominant purpose of the contract was for the sale of goods, and if it was, the UCC applies.The court will apply the "service-warranty" test to determine if the predominant purpose of the contract was for the provision of a service, and if it was, the UCC applies.The court will apply the "service-warranty" test to determine if the predominant purpose of the contract was for the sale of goods, and if it was, the UCC applies.

Assume Logan agrees on September 5 to sell 100 units of wooden chairs to a furniture shop, to be delivered on December 10 for $50 per unit. However, Logan refuses to deliver the contracted chairs because the market price on December 10 was $80 per unit. If true, the furniture shop can recover _______ in damages from Logan.Multiple choice question.$1000$3000$50$80

Grays Company has the following purchases and sales during the month of August. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold? Date Activities Units Acquired at Cost Units Sold at RetailAugust 1 Beginning inventory 10 units @ $44 = $440  August 3 Purchase 20 units @ $46 = $920  August 6 Sales   12 units soldMultiple Choice$502.$504.$532.$548.$460.

Suppose you want to purchase a new rug. You want it to measure 2.8 meters for length and 4.7 meters for width. The rug you wish to purchase is priced at $32.95 per square yard. Binding is included at no extra cost. What is the price of this rug?You will need to know that 1 yard = 0.9144 meters. Be careful not to round until your final answer.(Round your answer to the nearest cent, which means to the hundredth place, which is two places after the decimal. Don't include the dollar sign.)