Smith Company sells flags with team logos. Smith has fixed costs of $630,000 per year plus variable costs of $3.00 per flag. Each flag sells for $10.00. Read the equireme Requirement 1. Use the equation approach to compute the number of flags Smith must sell each year to break even. First, select the formula to compute the required sales in units to break even. Net sales revenue per uni Rearrange the formula you determined above and compute the required number of flags to break even The number of flags Smith must sell each year to break even is Requirement 2. Use the contribution margin ratio approach to compute the dollar sales Smith needs to eam S7,000 in operating income for 2018. (Round the contribution margin ratio to two decimal places.) Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn $7,000 in operating income. (Round the required sales in dollars up to the nearest whole dollar. For example, $10.25 would be rounded to Fixed costs Variable costs Target profit $11. Abbreviation used: CM contribution margin.) ( I Fixed costs l + Target profit , ) , | CM ratio | Required sales in dollars _ )r Requirement 3. Prepare Smith's contribution margin income statement for the year ended December 31, 2018, for sales of 80,000 flags. (Round your final answers up to the next whole number.) (Use parentheses or a minus sign for an operating loss.) Smith Company Contribution Margin Income Statement Year Ended December 31, 2018 Choose from any list or enter any number in the input field's and then continue to the next question. Save for Later