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TIMEWUIK. Chapter 3 Score: 0.81 of 1 pt Alternate Problem E3-30 (algo) Save 2 of 5 (5 complete) HW Score: 88.16%, 4.41 of 5 pts Question Help Carmel Rugs is holding a 2-week carpet sale at John's Club, a local warehouse store. Carmel Rugs plans to sol carpets for $500 each. The company will purchase the carpets from a local distributor for $350 each, with the privilege of returning any unsold units for a full refund. John's Club has offered Carmel Rugs two payment alternatives for the use of space. (Click the icon to view the additional information.) Read the requirements. Requirement 3. Calculate the degree of operating leverage at sales of 102 units for the two rental options. nnel Begin by determining the formula to calculate the degree of operating leverage. Then, calculate the degree of operating loverage for option 1, then option 2. (Round your answers to two decimal places. X.XX) Degree of operating leverage / - Option 1 Option 2 Contribution margin 15,300 10,200 $ $ 1.50 Operating income 10,200 10,200 / 5 1.00 Requirement 4. Briefly explain and interpret your answer to requirement 3 The results indicate that, when sales are 102 units, a percentage change in will result in times that percentage change in for option 1 and L times that percentage change in for option 2 Check Answer Choose from any list or enter any number in the input fields and then click Check Answer Clear All All parts showing

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