Question 3: Stenback Company sells flags with team logos. Stenback has fixed costs of $639,600 per year plus variable costs of $4.20 per flag. Each flag sells for $12.00. Requirements 1. Use the equation approach to compute the number of flags Stenback must sell each year to break even. 2. Use the contribution margin ratio approach to compute the dollar sales Stenback needs to eam $32,500 in operating income for 2014. (Round the contribution margin ratio to two decimal places.) 3. Prepare Stenback's contribution margin income statement for the year ended December 31, 2014, for sales of 76,000 flags. (Round your final answers up to the next whole number.) 4. The company is considering an expansion that will increase fixed costs by 23 % and variable costs by $0.60 per flag. Compute the new breakeven point in units and in dollars. Should Stenback undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number)