K McKnight Company sells flags with team logos McKnight has fixed costs of $1,320,000 per year plus variable costs of $11.00 per flag Each flag sells for $22 00 Read the requirements. THE JURUL ON TURC y una in un STAIN Rearrange the formula you determined above and compute the required number of flags to break even The number of flags McKnight must sell each year to break even is Requirement 2. Use the contribution margin ratio approach to compute the dollar sales McKnight need decimal places) Begin by showing the formula and then entering the amounts to calculate the required sales dollars to For example, $10 25 would be rounded to $11. Abbreviation used CM = contribution margin) = Required sales in dollars + % McKnight Company Contribution Margin Income Statement Year Ended December 31, 20XX *** = Requirement 3. Prepare McKnight's contribution margin income statement for the year ended Decemb parentheses or a minus sign for an operating loss) Target profit Requirements h 1. Use the equation approach to compute the number of flags McKnight must sell each year to break even 2. Use the contribution margin ratio approach to compute the dollar sales McKnight needs to earn $44,000 in operating income for the year (Round the contribution margin ratio to two decimal places) 3. Prepare McKnight's contribution margin income statement for the year ended December 31, for sales of 111,000 flags (Round your final answers up to the next whole number) Print - 4. The company is considering an expansion that will increase fixed costs by 20% and variable costs by $2 20 per flag Compute the new breakeven point in units and in dollars Should McKnight undertake the expansion? Give your reasoning (Round your final answers up to the next whole number) Done X Next

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