Stenback Company sells flags with team logos. Stenback has fixed costs of $2,100,000 per year plus variable costs of $7.50 per flag. Each flag sells for $2 Read the requirements. Requirements Requirement 1. Use the equation approach to compute the number of flags Stenback must sell each year to break even. First, select the formula to compute the required sales in units to break even. Rearrange the formula you determined above and compute the required number of flags to break even. The number of flags Stenback must sell each year to break even is = Target profit Requirement 2. Use the contribution margin ratio approach to compute the dollar sales Stenback needs to earn $52,500 in operating income for the year. Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn $52,500 in operating income. (Round the requi $11. Abbreviation used: CM = contribution margin.) 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 earn $52,500 in operating income for the year. (Round the contribution margin ratio to two decimal places.) 3. Prepare Stenback's contribution margin income statement for the year ended December 31, for sales of 115,000 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 $2.50 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.) + + = Required sales in dollars % = Print Done Requirement 3. Prepare Stenback's contribution margin income statement for the year ended December 31, for sales of 115,000 flags. (Round your final answers up to the next whole number.) (Use parentheses or a minus sign for an operating loss.) Stenback Company Contribution Margin Income Statement Year Ended December 31, 20XX Operating Income (Loss) -