Question: Decorative Decor, Inc., is considering three possible countries for the sole manutacturing ste of its newest area rug Brazil, France, and Spain. Al area rugs

Decorative Decor, Inc., is considering three possible countries for the sole manutacturing ste of its newest area rug Brazil, France, and Spain. Al area rugs are to be sold to retal outlets in the United States for $320 per unit. These real outlet add their own markup when selling to final customers. Fred costs and variable cost per un area rug) differ in the three countries Click the loon to view the cost data) Read the requirements Sales price per unit Breakeven point in units Breakeven point in revers Compute the breakeven point for Decorative Decor, Inc., in each country in (ants sold and (b) revenues using the formulas you determined above Brazil France Spain (a) Breakeven point in units (b) Breakeven point in revenues Requirement 2. Decorative Decor, 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. Operating income foss) Another way to solve for the operating income or loss is Operating income ou Compute the budgeted operating income or loss for Decorativo Decor, Inc., in each country in the company produces and als 90,000 ea rugs in 2014. (Use parentheses or a minus sign when entering operating ) Brazil France Spain Budpoled operating income has the lowest breakeven points since it has the faed costs and the variable cost per unit. Therefore, at any given seling price will always have the highest operating income Spain's breakeven point is than the budgeted sales in 2014, therefore an is budgeted each country in (a) units sold and (b) revenues using the formulas you determined above. Data Table on Country Variable Marketing Sales Price to Annual Fixed Variable Manufacturing and Distribution Cost Retail Outlets Costs Cost per Area Rug per Area Rug 320.00 $ 10,120,000 $ 50.00 $ 86.00 320.00 6,200,000 45.00 75.00 320.00 25,600,000 60.00 100.00 Brazil France Spain ra Print Done
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