Testbank Exercise 3

Buttermilk Bakery has provided the following cost data for the last year when 107,000 loaves of bread were produced and sold.

Raw materials		$241,820
Direct labor		85,600
Manufacturing overhead		201,830
Selling and administrative costs		154,730

All costs are variable except for $119,440 overhead and $72,340 selling and administrative. The sales price was $10 per loaf.

Testbank Exercise 3

If Buttermilk desires a target operating income of $140,000, what is the amount of sales dollars needed to reach this target? (Round answer to 0 decimal places, e.g. 16,405.)

Testbank Exercise 3

What would be the operating income from producing 82,100 loaves?