Sunshine Bakery produces regular and gluten-free bread. The regular bread is sold at $4 per loaf, and the gluten-free bread is sold at $7 per loaf. The variable cost of making the regular bread is $2.50 per loaf. It costs an extra $1.50 to make the gluten-free bread. It takes 5 labor hours to make 100 loaves of regular bread and 8 labor hours to make 100 loaves of gluten-free bread. There are 2,000 hours of labor time available for production each week. The maximum weekly sales for the regular and gluten-free bread are 10,000 and 4,000 loaves, respectively. Fixed production costs total $100,000 per year. All selling costs are fixed.

Required: (a) Calculate the optimal production level in number of loaves for each product. (b) Prepare a trial balance for the company based on the optimal production level. (c) Compute the total fixed and variable costs.