BE22.10 (LO 5) For Flynn Manufacturing, variable costs are 70% of sales, and fixed costs are 195,000. Management's net income goal is 75,000. 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. BE22.12 (LO 5) Deines plc has fixed costs of 480,000. It has a unit selling price of 6, unit variable costs of 4.40, and a target net income of 1,500,000. Compute the required sales in units to achieve its target net income. Compute the required sales in units for target net income. DO IT! 22.5 (LO 4, 5) Lika AG makes radios that sell for 30 each. For the coming year, management expects fixed costs to total 220,000 and variable costs to be 18 per unit. Compute break-even point, margin of safety ratio, and sales for target net income. a. Compute the break-even point in sales using the contribution margin (CM) ratio. b. Compute the margin of safety ratio assuming actual sales are 800,000. c. Compute the sales required to earn net income of 140,000. DO IT! 22.5