Question
Buttermilk bakery has provided the following cost data for the last year when 103,000 loaves of bread were produced and sold. Raw Material $245.150 Direct
Buttermilk bakery has provided the following cost data for the last year when 103,000 loaves of bread were produced and sold.
Raw Material $245.150
Direct labor $83,430
Manufacturing overhead $192,450
Selling and administrative costs $159,090
All costs are variable except for $116,230 overhead and $76,690 selling and administrative. The sales price was $10 per loaf.
A) How many units must be sold to meet a target operating income of $348,309
B) If Buttermilk desires a target operating income of $152,600, what is the amount of sales dollars needed to reach his target?
C)What would be the operating income from producing 84,900 loaves?
Explain each question thoroughly pleaaaase! :)
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