Unit # 6 -Test Bank 3 - Part C

Buttermilk Bakery has provided the following cost data for the last year when 109,000 loaves of bread were produced and sold.

All costs are variable except for $136,800 overhead and $71,080 selling and administrative. The sales price was $10 per loaf.

Please answer - PART C - What would be the operating income from producing 81,000 loaves?

$241,980 Raw materials Direct labor 77,390 Manufacturing overhead 216,370 Selling and administrative costs 147,380