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

Question

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

Quizplus · Accepted Answer

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

Buttermilk Bakery Has Provided the Following Cost Data for the Last