Smith Company sells flags with team logos. Smith has fixed costs of $126,000 per year plus variable costs of $9.80 per flag. Each flag sells for $14.00 Read the requirements Smith Company Contribution Margin Income Statement Year Ended December 31, 2018 Sales Revenue 420,000 Variable Costs 294,000 Contribution Margin 126.000 Fixed Costs - 126.000 Operating Income (Loss) Requirement 4. The company is considering an expansion that will increase fixed costs by 30% and variable costs by $1.40 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.) (Use the equation approach.) Begin by selecting the formula to compute the required sales in units to break even under the expansion plan Net sales revenue Variable costs Fixed costs - Target profit Rearrange the formula you determined above and compute the required number of flags to break even under the expansion plan. Under the expansion plan, the breakeven point in units would be flags. Under the expansion plan, the breakeven point in dollars would be $ Should Smith undertake the expansion? Give your reasoning. Smith should only undertake the expansion if expected profits from the expansion the expected costs