Crandall Company sells flags with team logos. Crandall has fixed costs of $583,200 per year plus variable costs of $4.80 per flag Each flag sells for $12.00 Requirements 1. Use the equation approach to compute the number of flags Crandall must sell each year to break even. 2. Use the contribution margin ratio approach to compute the dollar sales Crandall needs to earn $33,000 in operating income for the year. (Round the contribution margin ratio to two decimal places) 3. Prepare Crandall's contribution margin income statement for the year ended December 31, for sales of 70,000 Flags (Round your final answers up to the next whole number.) 4. The company is considering an expansion that will increase fixed costs by 21% and variable costs by $0.60 per flag Compute the new breakeven point in units and in dollars. Should Crandall undertake the expansion? Give your reasoning (Round your final answers up to the next whole number.) M:4-57A Computing breakeven sales and sales needed to earn a target profit; graphing CVP relationships, performing sensitivity analysis National Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($8.100), depreciation on office furniture (51,700), utilities ($2,000), special telephone lines ($1,500), a connection with an online brokerage service (52,500), and the salary of a financial planner ($5,200). Variable costs include payments to the financial planner (9% of revenue), advertising (11% of revenue). supplies and postage (4% of revenue), and usage fees for the telephone lines and computerized brokerage service (6% of revenue). Requirements 1. Use the contribution margin ratio approach to comjate National's breakeven revenue in dollars. If the average trade leads to $1,008 in revenue for National, how many trades must be made to break even? 2. Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $12,600. 3. Graph National's CVP relationships. Assume that an average trade leads to $1,000 in revenue for National. Show the breakeven point, the sales revenue line, the fixed cost line, the total cost line, the operating loss area, the operating income area, and the sales in units (trades) and dollars when monthly operating income of $12,600 is earned. 4. Suppose that the average revenue National earns increases to $1,500 per trade. Compute the new breakeven point in trades. How does this affect the breakeven point