Toler Company sells flags with team logos. Toler has fixed costs of $900,000 per year plus variable costs of $10.00 per flag. Each flag sells for $25.00. Read the requirements. Require 1 Requirements - X - to break even. First, se 1 = Target profit Rearrar In. The nu 1. Use the equation approach to compute the number of flags Toler must sell each year to break even. 2. Use the contribution margin ratio approach to compute the dollar sales Toler needs to earn $75,000 in operating income for 2018. (Round the contribution margin ratio to two decimal places.) 3. Prepare Toler's contribution margin income statement for the year ended December 31, 2018, for sales of 52,000 flags. (Round your final answers up to the next whole number.) 4. The company is considering an expansion that will increase fixed costs by 30% and variable costs by $2.50 per flag. Compute the new breakeven point in units and in dollars. Should Toler undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.) Require operatir lo earn $75,000 in Begin b operatir to $11. earn $75,000 in 10.25 would be rounded Print Print Done Done Require 31, 2018, for sales of amma tign for an operating 52.UUU hagurumu uur mur UroVoroup 52,000 hayo loss.) Requirement 1. Use the equation approach to compute the number of flags Toler must sell each year to break even. First, select the formula to compute the required sales in units to break even. Target profit ined above and compute the required number of flags to break even. Il each year to break even is Contribution margin per unit Fixed costs Net sales revenue Net sales revenue per unit Variable costs on margin ratio approach to compute the dollar sales Toler needs to earn $75,000 in I the contribution margin ratio to two decimal places.) then entering the amounts to calculate the required sales dollars to earn $75,000 in onorotina inomo (Dound the roamirodalon in dollar in to the norootbolo della Corovomno T o uld be rounded Requirement 1. Use the equation approach to compute the number of flags Toler must sell each year to break even. First, select the formula to compute the required sales in units to break even. Target profit Rearrange the formula you determined above and compute the required number of flags to break even. The number of flags Toler must sell each year to break even is Requirement 2. Use the contribution margin ratio approach to compute the dollar sales Toler needs to earn $75,000 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 $75,000 in operating income. (Round the required sales in dollars up to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM = contribution margin.) Required sales in dollars Rec CM ratio 52, L % = L CM per unit e Toler's contribution margin income statement for the year ended December 31, 2018, for sales of ur final answers up to the next whole number.) (Use parentheses or a minus sign for an operating Fixed costs Variable costs vrv. Company loss Requirement 2. Use the contribution margin ratio approach to compute the dollar sales Toler needs to earn $75,000 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 $75,000 in operating income. (Round the required sales in dollars up to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM = contribution margin.) + Required sales in dollars 10 % = [ + Requirement 3. Prepare Toler's contribution margin income statement for the year ended December 31, 2018, for sales of 52,000 flags. (Round your final answers up to the next whole number.) (Use parentheses or a minus sign for an operating loss.) Toler Company Contribution Margin Income Statement Year Ended December 31, 2018 Contribution Margin Cost of Goods Sold Fixed Costs Gross Profit Sales Revenue Variable Costs onsidering an expansion that will increase fixed costs by 30% and variable costs by $2.50 ven point in units and in dollars. Should Toler undertake the expansion? Give your reconina (Dound your final onore unto the next whole number the auction prob Requirement 3. Prepare Toler's contribution margin income statement for the year ended December 31, 2018, for sales of 52,000 flags. (Round your final answers up to the next whole number.) (Use parentheses or a minus sign for an operating loss.) Toler Company Contribution Margin Income Statement Year Ended December 31, 2018 Operating Income (Loss) Requirement 4. The company is considering an expansion that will increase fixed costs by 30% and variable costs by $2.50 per flag. Compute the new breakeven point in units and in dollars. Should Toler undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.) (Use the equation approach.) Begin by selecting the formula to compute the required sales in units to break even under the expansion plan. = Target profit ined above and compute the required number of flags to break even under the expansion Contribution margin per unit Fixed costs akeven point in units would be flags. Net sales revenue Net sales revenue per unit akeven point in dollars would be $ D . Variable costs Should Toler undertake the expansion? Give your reasoning. Toler should only undertake the expansion if expected profits from the expansion the expected costs. Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 4. The company is considering an expansion that will increase fixed costs by 30% and variable costs by $2.50 per flag. Compute the new breakeven point in units and in dollars. Should Toler undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.) (Use the equation approach.) Begin by selecting the formula to compute the required sales in units to break even under the expansion plan. = Target profit Rearrange the formula you determined above and compute the required number of flags to break even under the expansion plan. Under the expansion plan, the breakeven point in units would be are equal to Under the expansion plan, the breakeven point in dollars would be $ are greater than Should Toler undertake the expansion? Give your reasoning. are less than Toler should only undertake the expansion if expected profits from the expansion V the expected costs