Requirements 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 $25,000 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 23,000 flags. (Round your final answers up to the next whole number.) 4. The company is considering an expansion that will increase fixed costs by 40% and variable costs by $1.00 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.) Mckright Company sells Bags wih team logos McKright has foxed cogts of $150,000 per year phis variable costs of 5500 per fiag Each flag selts for $10 00 Reitd the Requirement 1. Usa the equation approach to coespote the number of llags Mcknight must noll tach year to break iven First, solect the formula to compute the tequired sales in units to break even Requirernent 1. Use the equation approach to compute the number of flags Mcknight must sell each year to break even First, select the formula to compute the required sales in units to break even