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Selected Exercises / Cost-Volume-Profit Practice Problem (LO 4,5) Shieh Ltd. makes calculators that sell for NT 5000 each. For the coming year, management expects fixed costs to total NT $6,600,000 and variable costs to be NT $270 per unit. Compute break-even point, contribution margin ratio, margin of safety, and sales for target net income. Instructions a. Compute break-even point in units using the mathematical equation. b. Compute break-even point in sales using the contribution margin (CM) ratio. c. Compute the margin of satety percentage assuming actual sales are NT $15,000,000. d. Compute the sales required to earn net income of NT $4,950,000. BRIEF EXERCISE 22.1 Monthly production costs in Paek Ltd. for two levels of production are as follows. fClassifu costs as variable. fixed. or mixed. Indicate which costs are variable, fixed, and mixed, and give the reason for each answer. Indirect labor is a variable cost because it increases in total directly and proportionately with the change in the activity level. Supervisory salaries is a fixed cost because it remains the same in total regardless of changes in the activity level. Maintenance is a mixed cost because it increases in total but not proportionately with changes in the activity level. BE22.10 (LO 5) For Flynn Manufacturing, variable costs are 70% of sales, and fixed costs are 6195,000 . Management's net income goal is 675,000 . Compute the required sales needed to achieve management's target net income of 75,000. (Use the contribution margin approach.) Compute sales for target net income. BE22.11 (LO 5) For Astoria Equipment, actual sales are R1,000,000, and break-even sales are R800,000. Compute (a) the margin of safety and (b) the margin of safety ratio. Compute the margin of safety and the margin of safety ratio. E22.4 (LO 1) Jaejin Furniture incurred the following costs. Classify variable, fixed, and mixed costs. 1. Wood used in the production of furniture. 2. Fuel used in delivery trucks. 3. Straight-line depreciation on factory building. 4. Screws used in the production of furniture. 5. Sales staff salaries. 6. Sales commissions. 7. Property taxes. 8. Insurance on buildings. 9. Wages of furniture craftsmen paid by the hours worked. 10. Salaries of factory supervisors. 11. Utitities expense. 12. Telephone bili. Instructions Itentify the costs above as variable, fixed, or mixed