Toler Company sells flags with team logos. Toler has fixed costs of $756,000 per year plus variable costs of $5.60 per flag. Each flag sells for $14.00. Read the requirements. ( 756000 + 42000 ) 20 % = 3990000 Requirement 3. Prepare Toler's contribution margin income statement for the year ended December 31, 2018, for sales of 86,000 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 20% and variable costs by $1.40 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 flags. Under the expansion plan, the breakeven point in dollars would be $ . 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