Webb Company sells flags with team logos$.$ Webb has fixed costs of $$480,000$ per year plus variable costs of $$6\mathrm{.}00$ per flag. Each flag sells for $$10\mathrm{.}00.$

Requirement $1.$ Use the equation approach to compute the number of flags Webb must sell each year to break even.

First, select the formula to compute the required sales in units to break even.

Rearrange the formula you determined above and compute the required number of flags to break even.

The number of flags Webb must sell each year to break even is

Requirement $2.$ Use the contribution margin ratio approach to compute the dollar sales Webb needs to earn $$20,000$ in operating income for the year. $($Round the contribution margin ratio to two

decimal places.$)$

Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn $$20,000$ in operating income. $($Round the required sales in dollars up to the nearest whole

dollar. For example, $$10\mathrm{.}25$ would be rounded to $$11.$ Abbreviation used: $CM=$ contribution margin.$)$

Requirement $3.$ Prepare Webb's contribution margin income statement for the year ended December $31,$ for sales of $114,000$ flags. $($Round your final answers up to the next whole number.$)($Use

parentheses or a minus sign for an operating loss.$)$

Webb Company

Contribution Margin Income Statement

Year Ended December $31,20$XX

IMG$\_7084-2$