Webb Company sells flags with team logos. Webb has fixed costs of $1,092,000 per year plus variable costs of $3.90 per flag. Each flag sells for $13.00. Read the requirements. 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. 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. The number of flags Webb must sell. each year to break even is 120,000 Requirement 2. Use the contribution margin ratio approach to compute the dollar sales Webb needs to earn $36,400 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 are 100 in 1. Use the equation approach to compute the number of flags Webb must sell each year to break even. 2. Use the contribution margin ratio approach to compute the dollar sales Webb needs to earn $36,400 in operating income for the year. (Round the contribution margin ratio to two decimal places.) 3. Prepare Webb's contribution margin income statement for the year ended December 31, for sales of 112,000 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 $1.30 per flag. Compute the new breakeven point in units and in dollars. Should Webb undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number) 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. Net sales revenue Variable costs = 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 120,000 Requirement 2. Use the contribution margin ratio approach to compute the dollar sales Webb needs to earn $36,400 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 $36,400 in operating income. (Round the required sales in dollars up to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM= contribution margin.) + Target profit 1CM ratio = Required sales in dollars First, select the formula to compute the required sales in units to break even. Net sales revenue Variable costs = Target profit 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 $36,400 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 $36,400 in operating income. (Round the required sales in dollars up to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM= contribution margin.) (Fixedcosts+Targetprofit)CMratio=Requiredsalesindollars+$36,400%=