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Kincaid Company sells flags with team logos. Kincaid has fixed costs of $270,000 per year plus variable costs of $10.50 per flag. Each flag sells
Kincaid Company sells flags with team logos. Kincaid has fixed costs of $270,000 per year plus variable costs of $10.50 per flag. Each flag sells for $15.00. Read the requirements. Requirements 1. Use the equation approach to compute the number of flags Kincaid must sell each year to break even. 2. Use the contribution margin ratio approach to compute the dollar sales Kincaid needs to earn $22,500 in operating income for the year. (Round the contribution margin ratio to two decimal places.) 3. Prepare Kincaid's contribution margin income statement for the year ended December 31, for sales of 54,000 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 $1.50 per flag. Compute the new breakeven point in units and in dollars. Should Kincaid undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.) Print Done
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