Kincaid Company sells flags with team logos. Kincaid has fixed costs of $400,000 per year plus variable costs of $5.00 per flag. Each flag sells for $10.00. Read the requirements. Requirement 1. Use the equation approach to compute the number of flags Kincaid must sell each year to break even. First, select the formula to compute the required sales in units to break even. = Target profit Rearrange the formula vou determined above and compute the required number of flags to break even The number of flags Kincaid must sell each year to break even is Requirement 2. Uze the contribution margin ratio approach to compute the dellar sales Kincaid needs to earn $15,000 in operating income for 2018. Round the contribution margin ratio to two decimal places Begin by showing the farmula and then entering the amcunts to calculate the required sales dollars to ca15,000 in operating income. Round the requied sales in dallars up to the nearest whele dallar. For example0.25 would be rounded to $11. Abbreviation used: CMn margin. = Required salas in dolars Requirement 3. Prepare Kincaid's contribution margin income statement for the year ended December 31, 2018, for sales of 77,000 flags. (Round your final answers up to the next whole number) Kincaid Company Contribution Margin Income Statement Year Ended December 31, 2018 Operating Income (Loss) Requirement 4 The cor equation approach.) any is consider ng an expansion that w increase fixed costs by 20% and vanable costs by $ 00 er a compute the new rea even n n un s and n dollars Should incad undertake the expans on? e vour reasoning Begin by selecting the formula to compute the required sales in units to break even under the expansion plan. 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 Under the expansion plan, the breakeven point in dollars would be S Should Kincaid undertake the expansion? Give your reasoning. Kincaid should only undertake the expansion if expected profits from the expansion lags | the expected costs