All costs are variable except for 122940 overhead and 72640


Question - Buttermilk Bakery has provided the following cost data for the last year when 99,000 loaves of bread were produced and sold.

Raw materials

$243,540

Direct labor

73,260

Manufacturing overhead

202,140

Selling and administrative costs

143,920

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?

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Accounting Basics: All costs are variable except for 122940 overhead and 72640
Reference No:- TGS02894938

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