White Company sells flags with team logos. White has fixed costs of $1,925,000 per year plus variable costs of $7.50 per flag. Each flag sells for $25.00. Read the requirements. Requirement 1. Use the equation approach to compute the number of flags White 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 White must sell each year to break even is = Target profit Requirement 2. Use the contribution margin ratio approach to compute the dollar sales White needs to earn $87,500 in operating income for the year. (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 $87,500 in operating income. (Round the r Abbreviation used: CM = contribution margin.) Requirements + = Required sales in dollars % + Requirement 3. Prepare White's contribution margin income statement for the year ended December 31, for sales of 104,000 flags. (Round your final White Company Contribution Margin Income Statement Year Ended December 31, 20XX 1. Use the equation approach to compute the number of flags White must sell each year to break even. 2. Use the contribution margin ratio approach to compute the dollar sales White needs to earn $87,500 in operating income for the year. (Round the contribution margin ratio to two decimal places.) 3. Prepare White's contribution margin income statement for the year ended December 31, for sales of 104,000 flags. (Round your final answers up to the next whole number.) 4. The company is considering an expansion that will increase fixed costs by 20% and variable costs by $2.50 per flag. Compute the new breakeven point in units and in dollars. Should White undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.) est