Toler Company sells flags with team logos. Toler has fixed costs of $ 1,680,000 per year plus variable costs of $ 7.20 per flag. Each flag sells for $ 24.00.

Requirement 4. The company is considering an expansion that will increase fixed costs by 20 % and variable costs by $2.40 per flag. Compute the new breakeven point in units and in dollars. Should Toler 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

how many flags?

Under the expansion plan, the breakeven point in dollars would be $

.______