Smith Company sells flags with team logos. Smith has fixed costs of $1,000,000 per year plus variabic costs of S10.00 per fag. Each flag sells tor $20.00 Re ad the eqitements Rcarrange the tormula you determined above and compute the required number o flags to break even. The number of flags Smith must sll each year to break even is999970 Requirement 2. Use the contribution margin ratio approach to compute the dollar sales Smith needs to earn $40 000 in aperating income for 2018. (Round the contribution margin ratio to two decimal places) Begin by showing the formula and thenentering the amounts to calculate the required sales dollars to earn S40,000 in operating income. (Round the required sales in dollars up to the nearest whole dollar. For example, $10.25 would be rournded lo eak even Abbreviation used CM-contribution margin) CM ratio + )1 - Required sales in dollars )i Requirement 3. Prepare Smith's contribution margin income statement for the year ended December 31, 2018, for sales of 92,000 flags. (Round your final answers up to the next whole number) (Use parentheses or a minus sign for an operating Smith Company Contribution Margin Income Statement Year Ended December 31, 2018 Sales Revenuc Variable Contribution Margin Fixed CostS Operatng Income (LoSS) Costs