Smith Company sells flags with team logos. Smith has fixed costs of $300,000 per year plus variable costs of $5.00 per flag. Each flag solls for $10.00 Read the requirements Requirement 1. Use the equation approach to compute the number of flags Smith must sell each year to break even First, select the formula to compute the required sales in units to break even Target profit -- Requirements 1. Use the equation approach to compute the number of flags Smith must sell each year to break even. 2. Use the contribution margin ratio approach to compute the dollar sales Smith needs to earn $15,000 in operating income for the year. (Round the contribution margin ratio to two decimal places.) 3. Prepare Smith's contribution margin income statement for the year ended December 31, for sales of 54,000 flags. (Round your final answers up to the next whole number.) 4. The company is considering an expansion that will increase fixed costs by 30% and variable costs by $1.00 per flag, Compute the new breakeven point in units and in dollars. Should Smith undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.) Print Done