Toler Company sells flags with team logos. Toler has fixed costs of $312.000 per year plus variable costs of $7.80 per flaq. Each flaq sells for $13.00 Read the requirements Requirement 1. Use the equation approach to compute thee number of flags Toler must sell each year to break even First, sclect the formula to compute the required sales in units to break eyen. Target profit Rearrange the formula you determined above and compute the required number of flaqs to break even. The number flaqs Toler must sell each year to break even is Requirement 2. Use the contribution margin ratio approach to compute the dollar sales Toler needs to earn $15,600 in operating income for 2018. (Round the contribution margin ratio to two decimal places.) dollars up to the nearest whole dollar. For example, $10.25 would be rounded Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn $15,600 in operating income. (Round the required sales to $11. Abbreviation used: CM contribution margin.) Required sales in dollars Prepare Toler's contribution margin income statement for the year ended December 31, 2018, for sales of 52,000 flags. (Round your final answers up to the next whole number.) (Use parentheses or a minus sign for an cOerating loss Toler Company Contribution Margin Income Statement Year Ended December 31, 2018 Operating Income (Loss) variable costs by $1.30 per flag. Compute expansion that will increase fixed costs by 40 % reasoning. (Round vour final answers up to the next whole number.) (Use the equation approach.) t4. The undertake the expansion? Give your onsidering eakeven point in and in hould mpany is new Begin by selecting the formula to compute the required sales in units to break even under the expansion plan. i Requirements Targel profit Rearrange the fomula you determined above and compute the required number of flags to break even under the expansion plan. 1. Use the equation approach to compute the number of flags Toler must sell each year to break even Under the expansion plan, the breakeven point in units would be lacs e the dollar sales Tolan needs to eam S15.600 in coerating income for 2018, (Round the contribution Under the expansion plan, the breakeven point in dollars would be S margin ratio to two decimal places.) 3. Prepare Toler's contribution margin income staternent for the year ended sales of 52,000 flags. (Round your final answers up to Should Toler undertake the expansion? Give your reasoning. the expected costs. Toler should only undertake the expansion if expected profits from the expansion 4. The company is considering an expansion that will increase fixed costs by 40% and variable costs by $1.30 per flag. Compute the new breakeven point your reasoning (Ro ind vour final answers un to the next woole number) Print Done