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Author Question: Buttermilk Bakery has provided the following cost data for the last year when 100,000 loaves of ... (Read 48 times)

Triley39

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Buttermilk Bakery has provided the following cost data for the last year when 100,000 loaves of bread were produced and sold.

Raw materials$225,000
Direct labor75,000
Manufacturing overhead200,000
Selling and administrative costs150,000

All costs are variable except for $125,000 of the overhead and $75,000 of the selling and administrative. The sales price was $10 per loaf.

Required:

a.How many units must be sold to meet a target operating income of $405,000?
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 will be the operating income from producing 90,000 loaves?


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Marked as best answer by Triley39 on Feb 5, 2023

mamboz

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Triley39

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


mjenn52

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Reply 3 on: Yesterday
:D TYSM

 

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