Question - Buttermilk Bakery has provided the following cost data for the last year when 99,000 loaves of bread were produced and sold.
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Raw materials
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$243,540
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Direct labor
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73,260
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Manufacturing overhead
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202,140
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Selling and administrative costs
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143,920
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All costs are variable except for $122,940 overhead and $72,640 selling and administrative. The sales price was $10 per loaf.
a. How many units must be sold to meet a target operating income of $342,452?
b. If Buttermilk desires a target operating income of $150,000, what is the amount of sales dollars needed to reach this target?
c. What would be the operating income from producing 90,000 loaves?